Cornercap Group Of Funds N-CSR Certified annual shareholder report (management investment company)

As filed with the Securities and Exchange Commission on May 29, 2015

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

Vicki Horwitz

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, 2014 – March 31, 2015

ITEM 1. REPORT TO STOCKHOLDERS.

Table of  Contents

Managers Report to Shareholders	1
CornerCap Balanced Fund	3
CornerCap Small-Cap Value Fund	5
CornerCap Large/Mid-Cap Value Fund	7
Fund Expenses	9
Schedules of Investment
CornerCap Balanced Fund	11
CornerCap Small-Cap Value Fund	18
CornerCap Large/Mid-Cap Value Fund	26
Statements of Assets and Liabilities	30
Statements of Operations	31
Statements of Changes in Net Assets	32
Financial Highlights
CornerCap Balanced Fund	33
CornerCap Small-Cap Value Fund	34
CornerCap Large/Mid-Cap Value Fund	35
Notes to Financial Statements	36
Report of Independent Registered Public Accounting Firm	43
Additional Information	45

Managers Report to Shareholders (Unaudited)
	March  31, 2015

Dear Shareholders,

The market environment for the year ending March 31, 2015, continued to favor equity investments over fixed income and most other asset classes.  Similarly, our shareholders have continued to benefit from the six-year recovery from the extreme market crash in 2008.  Those investors who stayed with their target equity exposure should be rewarded … and they were.

If we may say so ourselves, the equity returns for the 12 months ended a year ago (3/31/14) were abnormally high. Our large cap fund was up 28.42% and our small cap fund was up 33.09%.  In the near term, extraordinary investment returns make everyone happy.  But should they persist, a snowball could build for an even greater period of pain.  Returns would likely regress back to a normalized long term mean (average), and we would likely experience a mean correction.

The current-year results were more in-line with our longer term expectations.  For our equity funds, the CornerCap Large/Mid-Cap Value Fund was up 7.46% and the CornerCap Small-Cap Value Fund was up 8.21%.  The more conservative CornerCap Balanced Fund was up 5.12%.  (See the comparison of these returns to their relevant benchmarks, below.)

Our equity returns were hurt by an investor shift toward the mega stocks that offer an above-market yield.  This movement into higher yield and safety (size) can be attributed to slower worldwide growth, rising geopolitical risks, and some concern about a return to deflation.  Also, to some degree this shift in investor preference was caused by a growing disappointment in the fixed income market.  These investors expected interest rates to march higher throughout the year but rates continued to do the opposite.

As our long-term investors know, our outlook for the future starts with our Fundametrics® research process that completes a quantitative analysis and aggregation of over 5,000 companies over various market sectors.  Clearly, the equity market is not cheap, but it also is not trading at alarming levels.  Using price/earnings ratio (P/E) as a measure of the valuation risk, as of 3/31/15, the cap-weighted S&P 500 stock index had an 18.2 multiple, which is only slightly higher than its 16.4 long term average.  The P/E multiple for the buy candidates in our large-cap stock universe is 13.1.  Defensive stocks (e.g., utilities, health care, food and beverage) and REITs have become expensive.  Investors have “bid these stocks up” in anticipation of slowing growth in the US.

In the near term, we expect to maintain our allocations and long term commitment to equities, limiting our holdings in the highly valued defensive sectors.  We also expect to keep bond maturities relatively short in our Balanced Fund, recognizing that yields continue to be near their historic lows and the risk of inflation over time.  Thank you for your commitment to and investment in our fund company.

CornerCap Investment Counsel

Annual Report I March 31, 2015  1

Managers Report to Shareholders (Unaudited)
	March 31, 2015

The views in this letter reflect the opinions of CornerCap Group of Funds as of March 31, 2015, 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 the fund’s investment methodology and do not constitute investment advice.

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 CornerCap Balanced Fund is subject to the same risks as the underlying bonds in the portfolio such as credit, prepayment, call and interest rate risk.  As interest rates rise the value of bond prices will decline.  The CornerCap Balanced Fund invests in ETFs (Exchange-Traded Funds) and is therefore subject to the same risks as the underlying securities in which the ETF invests as well as entails higher expenses than if invested into the underlying ETF directly.

Price-to-Earnings Ratio (“P/E Ratio”) is the current share price of a stock divided by its earnings per share.

2 www.cornercapfunds.com

 

Managers Report to Shareholders (Unaudited)
	March 31, 2015

Annual Report I March 31, 2015 3

Managers Report to Shareholders (Unaudited)
	March 31, 2015

4 www.cornercapfunds.com

 

Managers Report to Shareholders (Unaudited)
	March 31, 2015

Annual Report I March 31, 2015 5

 

Managers Report to Shareholders (Unaudited)

6 www.cornercapfunds.com

Managers Report to Shareholders (Unaudited)
	March 31, 2015

Annual Report I March 31, 2015 7

Managers Report to Shareholders (Unaudited)
	March 31, 2015

8 www.cornercapfunds.com

Fund Expenses (Unaudited)

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, including wire fees, redemption fees, and low balance fees, and (2) ongoing costs, including management fees, and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds, and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from October 1, 2014, through March 31, 2015.

Actual Expenses – The first line under each Fund of the table below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during the period.

Hypothetical Example for Comparison Purposes – The second line under each Fund of the table below provides information about hypothetical account values and hypothetical expenses based on each Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not each Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in each Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as wire fees, redemption fees, and low balance fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

	Beginning		Ending		Expenses
	Account Value		Account Value		Paid During
	October 1, 2014		March 31, 2015		Period(a)
CornerCap Balanced Fund
Actual	$	1,000.00	$	1,020.93	$	5.54
Hypothetical (5% return before taxes)	$	1,000.00	$	1,019.45	$	5.54

CornerCap Small-Cap Value Fund
Actual	$	1,000.00	$	1,152.26	$	6.98
Hypothetical (5% return before taxes)	$	1,000.00	$	1,018.45	$	6.54

CornerCap Large/Mid-Cap Value Fund
Actual	$	1,000.00	$	1,031.48	$	6.08
Hypothetical (5% return before taxes)	$	1,000.00	$	1,018.95	$	6.04

(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 1.10% 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 (182), then divided by 365.

Annual Report I March 31, 2015 9

Fund Expenses (Unaudited)

The expenses shown in the table are meant to highlight and help you compare ongoing costs only and do not reflect any transactional costs, account maintenance fees or charges by processing organizations. The Funds do not charge any account maintenance fee 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.

10 www.cornercapfunds.com

SCHEDULE OF INVESTMENTS
CornerCap Balanced Fund	March 31, 2015

		Shares		Fair Value
COMMON STOCK (59.1%)
Advertising (0.7%)
	Omnicom Group, Inc.	2,405	$	187,542
Aerospace & Defense (0.7%)
	The Boeing Co.	1,235		185,349
Agriculture (0.7%)
	Archer-Daniels-Midland Co.	3,945		186,993
Auto Manufacturers (1.4%)
	General Motors Co.	4,965		186,187
	PACCAR, Inc.	2,985		188,473
				374,660
Banks (8.6%)
	BB&T Corp.	4,935		192,416
	Capital One Financial Corp.	2,280		179,710
	Citigroup, Inc.	3,955		203,762
	Fifth Third Bancorp	9,350		176,247
	JPMorgan Chase & Co.	3,425		207,486
	Regions Financial Corp.	20,465		193,394
	SunTrust Banks, Inc.	4,685		192,507
	The Bank of New York Mellon Corp.	5,140		206,834
	The Goldman Sachs Group, Inc.	985		185,150
	The PNC Financial Services Group, Inc.	2,135		199,067
	U.S. Bancorp	4,115		179,702
	Wells Fargo & Co.	3,420		186,048
				2,302,323
Biotechnology (0.7%)
	Gilead Sciences, Inc. (a)	1,830		179,578
Chemicals (2.8%)
	Celanese Corp., Class A	3,110		173,725
	Eastman Chemical Co.	2,660		184,231
	The Dow Chemical Co.	4,160		199,597
	The Mosaic Co.	4,000		184,240
				741,793
Computers (4.6%)
	Apple, Inc.	1,630		202,821
	EMC Corp.	6,805		173,936
	Hewlett-Packard Co.	4,945		154,086
	International Business Machines Corp.	1,165		186,983

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		11

SCHEDULE OF INVESTMENTS
CornerCap Balanced Fund	March 31, 2015

		Shares		Fair Value
Computers (4.6%) (continued)
	NetApp, Inc.	4,405	$	156,201
	Western Digital Corp.	2,035		185,205
	Xerox Corp.	14,335		184,205
				1,243,437
Diversified Financial Services (2.0%)
	American Express Co.	2,295		179,285
	Ameriprise Financial, Inc.	1,410		184,485
	Discover Financial Services	3,280		184,828
				548,598
Electric (2.1%)
	DTE Energy Co.	2,315		186,797
	Entergy Corp.	2,205		170,866
	Public Service Enterprise Group, Inc.	4,685		196,395
				554,058
Electrical Components & Equipment (0.7%)
	Emerson Electric Co.	3,245		183,732
Engineering & Construction (0.7%)
	Fluor Corp.	3,430		196,059
Food (0.7%)
	Tyson Foods, Inc., Class A	4,740		181,542
Forest Products & Paper (0.7%)
	International Paper Co.	3,375		187,279
Healthcare Services (2.3%)
	Aflac, Inc.	3,110		199,071
	CIGNA Corp.	1,760		227,814
	Quest Diagnostics, Inc.	2,640		202,884
				629,769
Insurance (5.7%)
	ACE, Ltd.	1,660		185,073
	Aetna, Inc.	1,850		197,081
	Assurant, Inc.	2,725		167,342
	CNA Financial Corp.	4,790		198,450
	Lincoln National Corp.	3,290		189,043
	MetLife, Inc.	3,960		200,178
	The Allstate Corp.	2,775		197,497
	The Travelers Cos., Inc.	1,795		194,093
				1,528,757

	The accompanying notes to financial statements are an integral part of these financial statements.
12		www.cornercapfunds.com

SCHEDULE OF INVESTMENTS
CornerCap Balanced Fund	March 31, 2015

		Shares		Fair Value
Internet (0.6%)
	Symantec Corp.	7,005	$	163,672
Leisure Time (0.7%)
	Harley-Davidson, Inc.	3,045		184,953
Lodging (0.7%)
	Las Vegas Sands Corp.	3,255		179,155
Machinery - Construction & Mining (0.6%)
	Caterpillar, Inc.	2,135		170,864
Media (1.9%)
	Comcast Corp., Class A	3,405		192,280
	Scripps Networks Interactive, Inc., Class A	2,445		167,629
	Viacom, Inc., Class B	2,435		166,311
				526,220
Miscellaneous Manufacturing (3.4%)
	Alcoa, Inc.	12,030		155,428
	Dover Corp.	2,500		172,800
	Nucor Corp.	4,255		202,240
	Parker Hannifin Corp.	1,545		183,515
	Precision Castparts Corp.	920		193,200
				907,183
Oil & Gas (2.9%)
	Ensco PLC, Class A	6,650		140,115
	Marathon Petroleum Corp.	1,830		187,374
	Tesoro Corp.	2,315		211,336
	Valero Energy Corp.	3,645		231,895
				770,720
Oil & Gas Services (3.3%)
	Cameron International Corp. (a)	4,275		192,888
	FMC Technologies, Inc. (a)	4,805		177,833
	Halliburton Co.	4,560		200,093
	National Oilwell Varco, Inc.	2,815		140,722
	Schlumberger, Ltd.	2,175		181,482
				893,018
Pharmaceuticals (1.4%)
	Express Scripts Holding Co. (a)	2,185		189,592
	Teva Pharmaceutical Industries, Ltd., ADR	3,235		201,541
				391,133

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		13

SCHEDULE OF INVESTMENTS
CornerCap Balanced Fund	March 31, 2015

		Shares		Fair Value
Retail (4.3%)
	Bed Bath & Beyond, Inc. (a)	2,600	$	199,615
	Best Buy Co., Inc.	4,700		177,613
	Kohl's Corp.	2,550		199,537
	Macy's, Inc.	2,915		189,213
	Ralph Lauren Corp.	1,405		184,757
	The Gap, Inc.	4,690		203,218
				1,153,953
Semiconductors (2.1%)
	Intel Corp.	5,415		169,327
	NVIDIA Corp.	9,095		190,313
	QUALCOMM, Inc.	2,940		203,860
				563,500
Software (0.7%)
	CA, Inc.	5,975		194,845
Telecommunications (0.7%)
	Cisco Systems, Inc.	6,610		181,940
Transportation (0.7%)
	Cummins, Inc.	1,300		180,232
	TOTAL COMMON STOCK (COST $15,319,671)			15,872,857

EXCHANGE TRADED FUNDS (4.0%)
	Guggenheim BulletShares 2015 High Yield        Corporate Bond ETF	20,260	528,989
	Guggenheim BulletShares 2016 High Yield        Corporate Bond ETF	20,135	530,557
	TOTAL EXCHANGE TRADED FUNDS (COST $1,069,739)		1,059,546

		Principal Amount	Fair Value
GOVERNMENT BOND (2.0%)
	U.S. Treasury Inflation Indexed Bonds, 0.125%, 01/15/2022	$   516,365	520,803
	TOTAL GOVERNMENT BOND (COST $508,399)		520,803

	The accompanying notes to financial statements are an integral part of these financial statements.
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SCHEDULE OF INVESTMENTS
CornerCap Balanced Fund	March 31, 2015

			Principal Amount		Fair Value
CORPORATE BONDS (28.4%)
Agriculture (0.8%)
	Reynolds American, Inc., 6.750%, 06/15/2017	$   200,000		$	221,904
Auto Manufacturers (1.4%)
	Ford Motor Co., 9.215%, 09/15/2021	275,000			364,663
Banks (3.4%)
	Bank of America Corp., 4.750%, 08/15/2020	250,000			273,288
	The Goldman Sachs Group, Inc., 5.750%, 01/24/2022	300,000			350,208
	The Goldman Sachs Group, Inc., 4.000%, 03/18/2029(b)	300,000			293,416
					916,912
Chemicals (1.7%)
	CF Industries, Inc., 7.125%, 05/01/2020	250,000			301,235
	The Dow Chemical Co., 2.500%, 02/15/2016	150,000			152,220
					453,455
Cosmetics & Personal Care (0.6%)
	The Estee Lauder Cos., Inc., 5.550%, 05/15/2017	150,000			163,501
Diversified Financial Services (3.3%)
	Credit Suisse USA, Inc., 5.375%, 03/02/2016	250,000			260,248
	Fiserv, Inc., 4.750%, 06/15/2021	300,000			333,294
	Weyerhaeuser Co., 7.125%, 07/15/2023	250,000			307,944
					901,486
Electronics (2.2%)
	Agilent Technologies, Inc., 5.000%, 07/15/2020	270,000			294,430
	Tech Data Corp., 3.750%, 09/21/2017	300,000			309,059
					603,489
Entertainment (1.0%)
	International Game Technology, 7.500%, 06/15/2019	250,000			266,714
Food (0.7%)
	Safeway, Inc., 3.950%, 08/15/2020	200,000			180,500
Healthcare Services (1.1%)
	Humana, Inc., 6.300%, 08/01/2018	250,000			285,397
Home Furnishings (0.6%)
	Whirlpool Corp., 6.500%, 06/15/2016	150,000			159,807

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		15

SCHEDULE OF INVESTMENTS
CornerCap Balanced Fund	March 31, 2015

		Principal Amount		Fair Value
Insurance (2.2%)
	The Travelers Cos., Inc., 5.900%, 06/02/2019	$   150,000	$	174,556
	WR Berkley Corp., 5.600%, 05/15/2015	150,000		150,784
	WR Berkley Corp., 5.375%, 09/15/2020	230,000		260,047
				585,387
Lodging (1.0%)
	Starwood Hotels & Resorts Woldwide, Inc., 7.375%, 11/15/2015	250,000		259,486
Media (1.0%)
	DIRECTV Holdings, LLC / DIRECTV Financing Co, Inc., 5.000%, 03/01/2021	$   255,000	$	283,828
Oil & Gas (1.7%)
	Chesapeake Energy Corp., 6.625%, 08/15/2020	285,000		294,262
	Statoil ASA, 6.700%, 01/15/2018	150,000		170,181
				464,443
Retail (5.7%)
	AutoZone, Inc., 5.500%, 11/15/2015	150,000		154,418
	Best Buy Co., Inc., 3.750%, 03/15/2016	200,000		204,500
	Dillard's, Inc., 6.625%, 01/15/2018	275,000		299,750
	Foot Locker, Inc., 8.500%, 01/15/2022	385,000		456,225
	Oshkosh Corp., 5.375%, 03/01/2022	100,000		103,750
	Walgreen Co., 3.100%, 09/15/2022	305,000		307,439
				1,526,082
	TOTAL CORPORATE BONDS (COST $7,548,767)			7,637,054

MUNICIPAL BONDS (1.7%)
Kansas (0.6%)
	Johnson County KS, Build America General Obligations Bonds, Unified School District No. 232, 4.950%, 09/01/2019	150,000	155,874
North Dakota (0.5%)
	Grand Forks ND, Build America Revenue Bonds, Series A, 4.500%, 09/01/2019	150,000	150,000
Texas (0.6%)
	County of Galveston TX, Build America General Obligation Bonds, Series B, 4.200%, 02/01/2017	150,000	157,157
	TOTAL MUNICIPAL BONDS (COST $452,802)		463,031

	The accompanying notes to financial statements are an integral part of these financial statements.
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SCHEDULE OF INVESTMENTS
CornerCap Balanced Fund	March 31, 2015

		Principal Amount		Fair Value
CERTIFICATES OF DEPOSIT (0.9%)
	Goldman Sachs Bank USA, Medium-Term Certificate of Deposit, 0.800%, 08/06/2015	$    250,000	$	250,409
	TOTAL CERTIFICATES OF DEPOSIT (COST $250,000)			250,409

		Shares		Fair Value
SHORT-TERM INVESTMENTS (3.7%)
	Federated Treasury Obligation Money Market Fund, 7 Day Yield 0.010%	988,775	$	988,775
	TOTAL SHORT-TERM INVESTMENTS (COST $988,775)			988,775

TOTAL INVESTMENTS (COST $26,138,153) 99.8% 26,792,475

TOTAL ASSETS IN EXCESS OF OTHER LIABILITIES 0.2% 64,473

NET ASSETS 100.0% $ 26,856,948

(a) Non-income producing security.

(b) Represents a step bond. Rate disclosed is as of March 31, 2015.

Common Abbreviations:

ADR American Depositary Receipt

ETF Exchange Traded Fund

LLC Limited Liability Company

Ltd. Limited

PLC Public Limited Company

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		17

SCHEDULE OF INVESTMENTS
CornerCap Small-Cap Value Fund	March 31, 2015

		Shares		Fair Value
COMMON STOCK (95.9%)
Aerospace & Defense (0.9%)
	Ducommun, Inc. (a)	15,300	$	396,270
	Kaman Corp.	9,500		403,085
				799,355
Auto Manufacturers (0.4%)
	Wabash National Corp. (a)	26,885		379,079
Auto Parts & Equipment (2.4%)
	Cooper Tire & Rubber Co.	10,245		438,896
	Cooper-Standard Holding, Inc. (a)	6,650		393,680
	Douglas Dynamics, Inc.	21,560		492,430
	Standard Motor Products, Inc.	10,750		454,295
	Tower International, Inc. (a)	10,505		279,433
				2,058,734
Banks (13.8%)
	Arrow Financial Corp.	14,826		402,526
	BBCN Bancorp, Inc.	28,000		405,160
	Chemical Financial Corp.	12,490		391,686
	Community Trust Bancorp, Inc.	11,931		395,632
	Customers Bancorp, Inc. (a)	16,605		404,498
	Enterprise Financial Services Corp.	19,295		398,635
	Fidelity Southern Corp.	24,540		414,235
	Financial Institutions, Inc.	16,900		387,517
	First Business Financial Services, Inc.	9,130		394,781
	First Community Bancshares, Inc.	23,565		413,095
	First Financial Corp.	11,745		421,528
	First Interstate Bancsystem, Inc.	14,635		407,146
	First Merchants Corp.	19,010		447,495
	FirstMerit Corp.	20,540		391,492
	German American Bancorp, Inc.	13,895		408,930
	Great Southern Bancorp, Inc.	9,990		393,506
	Hancock Holding Co.	12,880		384,597
	Heartland Financial USA, Inc.	12,470		406,896
	Horizon Bancorp.	17,295		404,530
	Lakeland Bancorp, Inc.	35,991		413,896
	MainSource Financial Group, Inc.	21,065		413,717
	NBT Bancorp, Inc.	16,370		410,232
	Old National Bancorp	28,100		398,739
	S&T Bancorp, Inc.	13,655		387,529
	Stock Yards Bancorp, Inc.	11,910		410,061
	TowneBank/Portsmouth VA	24,835		399,347
	Univest Corp. of Pennsylvania	20,470		405,101
	Walker & Dunlop, Inc. (a)	23,655		419,403
	WesBanco, Inc.	12,045		392,426
				11,724,336

	The accompanying notes to financial statements are an integral part of these financial statements.
18		www.cornercapfunds.com

SCHEDULE OF INVESTMENTS
CornerCap Small-Cap Value Fund	March 31, 2015

		Shares		Fair Value
Building Materials (1.5%)
	Boise Cascade Co. (a)	11,825	$	442,964
	Century Aluminum Co. (a)	26,540		366,252
	Universal Forest Products, Inc.	7,635		423,590
				1,232,806
Chemicals (2.0%)
	A Schulman, Inc.	10,055		484,651
	Cabot Corp.	9,050		407,250
	Innospec, Inc.	9,030		418,902
	Stepan Co.	9,460		394,103
				1,704,906
Commercial Services (2.2%)
	American Public Education, Inc. (a)	12,770		382,844
	DeVry Education Group, Inc.	11,205		373,799
	Korn/Ferry International	10,225		336,096
	Navigant Consulting, Inc. (a)	29,965		388,346
	RPX Corp. (a)	27,235		391,912
				1,872,997
Computers (3.1%)
	Computer Task Group, Inc.	29,660		216,815
	Convergys Corp.	18,260		417,606
	Insight Enterprises, Inc. (a)	14,815		422,524
	Mentor Graphics Corp.	17,945		431,218
	Science Applications International Corp.	7,435		381,787
	Super Micro Computer, Inc. (a)	11,300		375,273
	Sykes Enterprises, Inc. (a)	16,745		416,113
				2,661,336
Distribution/Wholesale (0.5%)
	Houston Wire & Cable Co.	40,300		392,119
Diversified Financial Services (2.8%)
	CRA International, Inc. (a)	10,890		338,897
	Higher One Holdings, Inc. (a)	54,640		132,229
	Nationstar Mortgage Holdings, Inc. (a)	13,595		336,748
	Piper Jaffray Cos. (a)	7,320		384,007
	Provident Financial Services, Inc.	21,535		401,628
	Renasant Corp.	13,740		412,887
	The JG Wentworth Co., Class A (a)	36,690		381,209
				2,387,605
Electric (1.5%)
	Black Hills Corp.	8,095		408,312
	El Paso Electric Co.	10,980		424,267
	PNM Resources, Inc.	14,190		414,348
				1,246,927

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		19

SCHEDULE OF INVESTMENTS
CornerCap Small-Cap Value Fund	March 31, 2015

		Shares		Fair Value
Electrical Components & Equipment (0.5%)
	SL Industries, Inc. (a)	9,370	$	400,568
Electronics (5.5%)
	AVX Corp.	27,515		392,639
	Benchmark Electronics, Inc. (a)	17,175		412,715
	GSI Group, Inc. (a)	31,560		420,379
	II-VI, Inc. (a)	29,320		541,247
	Methode Electronics, Inc.	9,390		441,706
	Newport Corp. (a)	20,970		399,688
	OSI Systems, Inc. (a)	5,430		403,232
	Plexus Corp. (a)	9,995		407,496
	Sanmina Corp. (a)	17,440		421,874
	Tech Data Corp. (a)	7,385		426,632
	Zagg, Inc. (a)	44,575		386,465
				4,654,073
Engineering & Construction (1.9%)
	Aegion Corp. (a)	22,260		401,793
	Argan, Inc.	12,320		445,614
	EMCOR Group, Inc.	8,910		414,048
	MasTec, Inc. (a)	19,390		374,227
				1,635,682
Food (1.5%)
	Fresh Del Monte Produce, Inc.	11,470		446,297
	Ingles Markets, Inc., Class A	7,250		358,730
	SpartanNash Co.	15,462		487,981
				1,293,008
Forest Products & Paper (1.9%)
	KapStone Paper and Packaging Corp.	12,375		406,395
	Neenah Paper, Inc.	6,605		413,077
	Orchids Paper Products Co.	14,275		384,854
	Schweitzer-Mauduit International, Inc.	9,045		417,155
				1,621,481
Gas (0.9%)
	Southwest Gas Corp.	7,215		419,697
	WGL Holdings, Inc.	5,585		314,994
				734,691
Hand & Machine Tools (0.5%)
	Regal-Beloit Corp.	5,175		413,586

	The accompanying notes to financial statements are an integral part of these financial statements.
20		www.cornercapfunds.com

SCHEDULE OF INVESTMENTS
CornerCap Small-Cap Value Fund	March 31, 2015

		Shares		Fair Value
Healthcare Products (1.5%)
	Exactech, Inc. (a)	17,620	$	451,600
	Greatbatch, Inc. (a)	7,375		426,644
	Hill-Rom Holdings, Inc.	8,230		403,270
				1,281,514
Healthcare Services (2.6%)
	Almost Family, Inc. (a)	12,350	$	552,168
	IPC The Hospitalist Co., Inc. (a)	8,870		413,697
	LHC Group, Inc. (a)	11,155		368,450
	Magellan Health, Inc. (a)	6,060		429,169
	National Healthcare Corp.	6,380		406,470
				2,169,954
Home Builders (0.9%)
	Thor Industries, Inc.	6,445		407,388
	US Concrete, Inc. (a)	11,475		388,773
				796,161
Home Furnishings (1.8%)
	Daktronics, Inc.	39,100		422,671
	Flexsteel Industries, Inc.	13,040		408,021
	Haverty Furniture Cos., Inc.	16,395		407,908
	Hooker Furniture Corp.	16,620		316,611
				1,555,211
Household Products (0.5%)
	Ennis, Inc.	29,160		411,739
Household Products/Wares (0.5%)
	CSS Industries, Inc.	14,350		432,653
Insurance (7.5%)
	American Equity Investment Life Holding Co.	13,905		405,053
	American National Insurance Co.	2,805		275,984
	AMERISAFE, Inc.	9,830		454,638
	Aspen Insurance Holdings, Ltd.	8,615		406,886
	FBL Financial Group, Inc., Class A	6,945		430,659
	Federated National Holding Co.	11,540		353,124
	Maiden Holdings, Ltd.	30,475		451,944
	Montpelier Re Holdings, Ltd.	10,830		416,305
	National General Holdings Corp.	22,450		419,815
	Selective Insurance Group, Inc.	15,585		452,744
	StanCorp Financial Group, Inc.	5,865		402,339
	The Navigators Group, Inc. (a)	5,615		437,072
	United Fire Group, Inc.	13,490		428,577
	United Insurance Holdings Corp.	17,270		388,575
	Universal Insurance Holdings, Inc.	27,030		691,698
				6,415,413

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		21

SCHEDULE OF INVESTMENTS
CornerCap Small-Cap Value Fund	March 31, 2015

		Shares		Fair Value
Internet (0.9%)
	Bankrate, Inc. (a)	31,760	$	360,158
	Dice Holdings, Inc. (a)	43,190		385,255
				745,413
Leisure Services (0.5%)
	Steiner Leisure, Ltd. (a)	8,490		402,426
Machinery - Construction & Mining (0.5%)
	Hyster-Yale Materials Handling, Inc.	5,930		434,610
Machinery - Diversified (1.8%)
	Alamo Group, Inc.	6,955		439,069
	Applied Industrial Technologies, Inc.	7,705		349,345
	DXP Enterprises, Inc. (a)	7,420		327,148
	Terex Corp.	15,730		418,260
				1,533,822
Media (0.9%)
	Journal Communications, Inc., Class A (a)	26,725		396,064
	Meredith Corp.	7,275		405,727
				801,791
Metal Fabricate & Hardware (0.5%)
	Worthington Industries, Inc.	15,195		404,339
Mining (0.5%)
	United States Lime & Minerals, Inc.	6,275		404,738
Miscellaneous Manufacturing (4.9%)
	Actuant Corp., Class A	12,020		285,355
	AZZ, Inc.	8,930		416,049
	Blount International, Inc. (a)	30,445		392,132
	Chase Corp.	7,475		326,882
	Columbus McKinnon Corp.	16,250		437,775
	Federal Signal Corp.	26,595		419,935
	Hillenbrand, Inc.	13,130		405,323
	Insteel Industries, Inc.	18,550		401,236
	Lydall, Inc. (a)	10,420		330,522
	Park-Ohio Holdings Corp.	7,075		372,640
	Tredegar Corp.	20,170		405,619
				4,193,468
Office Furnishings (0.8%)
	Herman Miller, Inc.	14,020		389,195
	Knoll, Inc.	13,510		316,539
				705,734

	The accompanying notes to financial statements are an integral part of these financial statements.
22		www.cornercapfunds.com

SCHEDULE OF INVESTMENTS
CornerCap Small-Cap Value Fund	March 31, 2015

		Shares		Fair Value
Oil & Gas (1.5%)
	Atwood Oceanics, Inc.	13,800	$	387,918
	Delek US Holdings, Inc.	10,735		426,716
	PBF Energy, Inc.	13,195		447,575
				1,262,209
Oil & Gas Services (4.0%)
	Bristow Group, Inc.	6,715		365,632
	Forum Energy Technologies, Inc. (a)	21,000		411,600
	Gulf Island Fabrication, Inc.	28,100		417,566
	Helix Energy Solutions Group, Inc. (a)	29,605		442,891
	Matrix Service Co. (a)	22,025		386,759
	Newpark Resources, Inc. (a)	42,680		388,815
	Oil States International, Inc. (a)	5,855		232,853
	Tesco Corp.	35,195		400,167
	Thermon Group Holdings, Inc. (a)	16,420		395,229
				3,441,512
Packaging & Containers (0.8%)
	Silgan Holdings, Inc.	7,115		413,595
	UFP Technologies, Inc. (a)	12,779		291,106
				704,701
Pharmaceuticals (2.1%)
	Cambrex Corp. (a)	13,930		552,046
	Nutraceutical International Corp. (a)	21,865		430,740
	Omega Protein Corp. (a)	27,530		376,886
	USANA Health Sciences, Inc. (a)	3,980		442,258
				1,801,930
Retail (3.9%)
	America's Car-Mart, Inc. (a)	7,580		411,215
	Genesco, Inc. (a)	5,855		417,052
	GNC Holdings, Inc., Class A	10,855		532,655
	Nautilus, Inc. (a)	25,395		387,782
	Rocky Brands, Inc.	18,395		397,332
	Stage Stores, Inc.	17,915		410,612
	Stein Mart, Inc.	29,200		363,540
	The Finish Line, Inc., Class A	16,730		410,219
				3,330,407
Savings & Loans (2.3%)
	Dime Community Bancshares, Inc.	25,455		409,825
	First Defiance Financial Corp. (a)	12,280		403,030
	Flushing Financial Corp.	19,975		400,898
	HomeStreet, Inc. (a)	21,525		394,338
	WSFS Financial Corp.	5,165		390,629
				1,998,720

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		23

SCHEDULE OF INVESTMENTS
CornerCap Small-Cap Value Fund	March 31, 2015

		Shares		Fair Value
Semiconductors (2.1%)
	Diodes, Inc. (a)	15,815	$	451,676
	IXYS Corp.	33,475		412,412
	Microsemi Corp. (a)	14,870		526,398
	Semtech Corp. (a)	14,235		379,292
				1,769,778
Software (1.4%)
	Coherent, Inc. (a)	6,080		394,957
	PDF Solutions, Inc. (a)	18,635		333,939
	Progress Software Corp. (a)	15,725		427,248
				1,156,144
Technology (0.5%)
	TeleTech Holdings, Inc.	16,815		427,942
Telecommunications (2.7%)
	Comtech Telecommunications Corp.	11,650		337,268
	IDT Corp., Class B	19,660		348,965
	Inteliquent, Inc.	25,600		402,944
	Netgear, Inc. (a)	12,290		404,095
	Polycom, Inc. (a)	30,215		404,881
	Shenandoah Telecommunications Co.	13,920		433,747
				2,331,900
Textiles (0.5%)
	Culp, Inc.	15,640		418,370
Transportation (2.3%)
	Aaron's, Inc.	13,850		392,094
	Air Transport Services Group, Inc. (a)	44,100		406,602
	ArcBest Corp.	10,615		402,202
	Con-way, Inc.	9,080		400,700
	Universal Truckload Services, Inc.	12,610		317,520
				1,919,118
Water (0.4%)
	SJW Corp.	12,180		376,484
Wholesale Distributors (1.0%)
	ScanSource, Inc. (a)	10,750		436,988
	United Stationers, Inc.	10,090		413,589
				850,577
	TOTAL COMMON STOCK (COST $74,786,352)			81,692,067

	The accompanying notes to financial statements are an integral part of these financial statements.
24		www.cornercapfunds.com

SCHEDULE OF INVESTMENTS
CornerCap Small-Cap Value Fund	March 31, 2015

		Shares			Fair Value
SHORT-TERM INVESTMENTS (4.7%)
	Federated Treasury Obligation Money Market Fund, 7 Day Yield 0.010%		3,960,528	$	3,960,528
	TOTAL SHORT-TERM INVESTMENTS (COST $3,960,528)				3,960,528
TOTAL INVESTMENTS (COST $78,746,880)			100.6%		85,652,595
TOTAL LIABILITIES IN EXCESS OF OTHER ASSETS			(0.6)%		(475,286)
NET ASSETS			100.0%	$	85,177,309

(a) Non-income producing security.

Common Abbreviations:

Ltd. - Limited

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		25

SCHEDULE OF INVESTMENTS
CornerCap Large/Mid-Cap Value Fund	March 31, 2015

		Shares		Fair Value
COMMON STOCK (99.0%)
Advertising (1.2%)
	Omnicom Group, Inc.	1,755	$	136,855
Aerospace & Defense (1.2%)
	The Boeing Co.	935		140,325
Agriculture (1.2%)
	Archer-Daniels-Midland Co.	3,040		144,096
Auto Manufacturers (2.5%)
	General Motors Co.	3,545		132,938
	PACCAR, Inc.	2,430		153,430
				286,368
Banks (14.0%)
	BB&T Corp.	3,510		136,855
	Capital One Financial Corp.	1,690		133,206
	Citigroup, Inc.	2,485		128,027
	Fifth Third Bancorp	7,435		140,150
	JPMorgan Chase & Co.	2,210		133,882
	Regions Financial Corp.	13,660		129,087
	SunTrust Banks, Inc.	3,465		142,377
	The Bank of New York Mellon Corp.	3,345		134,603
	The Goldman Sachs Group, Inc.	720		135,338
	The PNC Financial Services Group, Inc.	1,415		131,934
	U.S. Bancorp	3,285		143,456
	Wells Fargo & Co.	2,455		133,552
				1,622,467
Biotechnology (1.2%)
	Gilead Sciences, Inc. (a)	1,435		140,817
Chemicals (4.7%)
	Celanese Corp., Class A	2,365		132,109
	Eastman Chemical Co. (a)	1,915		132,633
	The Dow Chemical Co.	3,020		144,899
	The Mosaic Co.	2,845		131,041
				540,682
Computers (7.7%)
	Apple, Inc.	1,135		141,228
	EMC Corp.	5,575		142,497
	Hewlett-Packard Co.	4,040		125,886
	International Business Machines Corp.	915		146,858
	NetApp, Inc.	3,910		138,649

	The accompanying notes to financial statements are an integral part of these financial statements.
26		www.cornercapfunds.com

SCHEDULE OF INVESTMENTS
CornerCap Large/Mid-Cap Value Fund	March 31, 2015

		Shares		Fair Value
Computers (7.7%) (continued)
	Western Digital Corp.	720	$	65,527
	Xerox Corp.	10,505		134,989
				895,634
Diversified Financial Services (3.4%)
	American Express Co.	1,680		131,242
	Ameriprise Financial, Inc.	1,015		132,802
	Discover Financial Services	2,275		128,196
				392,240
Electric (3.7%)
	DTE Energy Co.	1,875		151,294
	Entergy Corp.	1,830		141,806
	Public Service Enterprise Group, Inc.	3,340		140,013
				433,113
Electrical Components & Equipment (1.2%)
	Emerson Electric Co.	2,415		136,737
Engineering & Construction (1.2%)
	Fluor Corp.	2,490		142,328
Food (1.3%)
	Tyson Foods, Inc., Class A	3,835		146,880
Forest Products & Paper (1.2%)
	International Paper Co.	2,480		137,615
Healthcare Services (3.7%)
	Aetna, Inc.	1,335		142,218
	CIGNA Corp.	1,050		135,912
	Quest Diagnostics, Inc.	2,025		155,621
				433,751
Insurance (9.5%)
	ACE, Ltd.	1,205		134,345
	Aflac, Inc.	2,170		138,902
	Assurant, Inc.	2,195		134,795
	CNA Financial Corp.	3,275		135,683
	Lincoln National Corp.	2,345		134,744
	MetLife, Inc.	2,805		141,793
	The Allstate Corp.	1,935		137,714
	The Travelers Cos., Inc.	1,360		147,057
				1,105,033

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		27

SCHEDULE OF INVESTMENTS
CornerCap Large/Mid-Cap Value Fund	March 31, 2015

		Shares		Fair Value
Internet (1.2%)
	Symantec Corp.	5,745	$	134,232
Leisure Time (1.2%)
	Harley-Davidson, Inc.	2,370		143,954
Lodging (1.2%)
	Las Vegas Sands Corp.	2,610		143,654
Machinery - Construction & Mining (1.0%)
	Caterpillar, Inc.	1,510		120,845
Media (2.3%)
	Scripps Networks Interactive, Inc., Class A	1,995		136,777
	Viacom, Inc., Class B	1,980		135,234
				272,011
Miscellaneous Manufacturing (5.8%)
	Alcoa, Inc.	9,250		119,510
	Dover Corp.	1,900		131,328
	Nucor Corp.	2,875		136,649
	Parker Hannifin Corp.	1,255		149,069
	Precision Castparts Corp.	640		134,400
				670,956
Oil & Gas (4.6%)
	Ensco PLC, Class A	3,865		81,435
	Marathon Petroleum Corp.	1,380		141,298
	Tesoro Corp.	1,675		152,911
	Valero Energy Corp.	2,490		158,414
				534,058
Oil & Gas Services (5.9%)
	Cameron International Corp. (a)	3,295		148,671
	FMC Technologies, Inc. (a)	3,755		138,973
	Halliburton Co.	3,260		143,049
	National Oilwell Varco, Inc.	2,260		112,977
	Schlumberger, Ltd.	1,735		144,768
				688,438
Pharmaceuticals (2.6%)
	Express Scripts Holding Co. (a)	1,785		154,884
	Teva Pharmaceutical Industries, Ltd., ADR	2,315		144,225
				299,109

	The accompanying notes to financial statements are an integral part of these financial statements.
28		www.cornercapfunds.com

SCHEDULE OF INVESTMENTS
CornerCap Large/Mid-Cap Value Fund	March 31, 2015

		Shares		Fair Value
Retail (7.2%)
	Bed Bath & Beyond, Inc. (a)	1,820	$	139,731
	Best Buy Co., Inc.	3,325		125,652
	Kohl's Corp.	1,820		142,415
	Macy's, Inc.	2,145		139,232
	Ralph Lauren Corp.	1,150		151,225
	The Gap, Inc.	3,295		142,772
				841,027
Semiconductors (3.5%)
	Intel Corp.	4,355		136,181
	NVIDIA Corp.	6,230		130,363
	QUALCOMM, Inc.	1,945		134,866
				401,410
Software (1.2%)
	CA, Inc.	4,285		139,734
Telecommunications (1.2%)
	Cisco Systems, Inc.	4,950		136,249
Transportation (1.2%)
	Cummins, Inc.	1,030		142,799
	TOTAL COMMON STOCK (COST $11,189,658)			11,503,417

SHORT-TERM INVESTMENTS (0.6%)
	Federated Treasury Obligation Money Market Fund, 7 Day Yield 0.010%	67,185	67,185
	TOTAL SHORT-TERM INVESTMENTS (COST $67,185)		67,185

TOTAL INVESTMENTS (COST $11,256,843) 99.6% 11,570,602

TOTAL ASSETS IN EXCESS OF OTHER LIABILITIES 0.4% 42,502

NET ASSETS 100.0% $ 11,613,104

(a) Non-income producing security.

Common Abbreviations:

ADR - American Depositary Receipt

Ltd. - Limited

PLC - Public Limited Company

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		29

Statements of Assets and Liabilities
	March 31, 2015

		60		CornerCap Balanced Fund		CornerCap Small-Cap Value Fund		CornerCap Large/Mid-Cap Value Fund
ASSETS:
Investments, at value (Cost $26,138,153, $78,746,880 and $11,256,843, respectively)			$	26,792,475	$	85,652,595	$	11,570,602
Receivable for fund shares subscribed				-		3,062		3,035
Receivable for investments sold				184,950		2,070,965		165,190
Dividends and interest receivable				109,040		57,402		19,244
	Total assets			27,086,465		87,784,024		11,758,071
LIABILITIES:
Payable for investment securities purchased				189,609		2,520,778		132,600
Payable for fund shares redeemed				15,020		-		-
Advisory fee payable				18,100		52,884		7,214
Operating expense payable				6,788		33,053		5,153
	Total liabilities			229,517		2,606,715		144,967
Net assets			$	26,856,948	$	85,177,309	$	11,613,104
PRICING OF SHARES (NOTE 2):
Net Assets			$	26,856,948	$	85,177,309	$	11,613,104
Shares Outstanding				1,837,030		5,477,174		844,299
Net asset value, offering and redemption price per share			$	14.62	$	15.55	$	13.75
NET ASSETS CONSISTS OF:
Paid-in capital			$	23,972,781	$	73,831,329	$	9,667,866
Undistributed net investment income				102,753		54,964		42,845
Accumulated net realized gain on investments				2,127,092		4,385,301		1,588,634
Net unrealized appreciation in value of investments				654,322		6,905,715		313,759
Net assets			$	26,856,948	$	85,177,309	$	11,613,104

	The accompanying notes to financial statements are an integral part of these financial statements.
30		www.cornercapfunds.com

Statements of Operations
	For the Year Ended March 31, 2015

		CornerCap Balanced Fund			CornerCap Small-Cap Value Fund			CornerCap Large/Mid-Cap Value Fund
INVESTMENT INCOME:
Dividends, (net of foreign withholding taxes of $1,062, $393 and $837,    respectively)	$	396,829		$	950,395		$	269,657
Interest		253,401			243			41
Total investment income		650,230			950,638			269,698
EXPENSES:
Advisory fees		255,453			645,378			120,880
Operating expenses		76,636			322,689			60,440
Total expenses		332,089			968,067			181,320
Less fees waived/reimbursed by investment adviser		(51,091	)		(129,076	)		(36,264	)
Net expenses		280,998			838,991			145,056
Net investment income		369,232			111,647			124,642
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments		3,187,612			7,272,052			2,389,525
Change in unrealized appreciation (depreciation) of investments		(2,301,112	)		(1,540,105	)		(1,658,144	)
Net gain on investments		886,500			5,731,947			731,381
Net increase in net assets resulting from operations	$	1,255,732		$	5,843,594		$	856,023

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		31

Statements of Changes in Net Assets

		CornerCap Balanced Fund						CornerCap Small-Cap Value Fund						CornerCap Large/Mid-Cap Value Fund
		Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2015			Year Ended March 31, 2014
OPERATIONS:
	Net investment income	$	369,232		$	319,952		$	111,647		$	10,592		$	124,642		$	96,562
	Net realized gain on investments		3,187,612			1,938,644			7,272,052			8,729,108			2,389,525			1,229,947
	Long-term capital gains distributions   from other investment companies		-			39,075			-			-			-			-
	Change in unrealized appreciation (depreciation) of investments		(2,301,112	)		932,941			(1,540,105	)		5,903,304			(1,658,144	)		1,129,991
	Net increase in net assets resulting from operations		1,255,732			3,230,612			5,843,594			14,643,004			856,023			2,456,500
DISTRIBUTIONS TO SHAREHOLDERS:
	From net investment income		(366,495	)		(290,002	)		(78,979	)		-			(114,458	)		(80,252	)
	From net realized gain on investments		(2,348,112	)		(830,002	)		(7,714,238	)		(6,390,497	)		(875,657	)		-
Total distributions			(2,714,607	)		(1,120,004	)		(7,793,217	)		(6,390,497	)		(990,115	)		(80,252	)
CAPITAL SHARE TRANSACTIONS:
	Net increase from capital share transactions (see Note 3)		4,795,321			2,117,524			27,367,188			14,905,290			895,024			311,915
	Redemption fees		-			1,894			-			1,568			116			1,001
Net increase from capital share transactions			4,795,321			2,119,418			27,367,188			14,906,858			895,140			312,916
Total increase in net assets			3,336,446			4,230,026			25,417,565			23,159,365			761,048			2,689,164
NET ASSETS:
	Beginning of year		23,520,502			19,290,476			59,759,744			36,600,379			10,852,056			8,162,892
	End of year*	$	26,856,948		$	23,520,502		$	85,177,309		$	59,759,744		$	11,613,104		$	10,852,056
*	Including undistributed net investment income/(loss) of:	$	102,753		$	100,016		$	54,964		$	-		$	42,845		$	32,661

	The accompanying notes to financial statements are an integral part of these financial statements.
32		www.cornercapfunds.com

Financial Highlights

CornerCap Balanced Fund

Selected data for each share of beneficial interest outstanding throughout the years indicated:		Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended March 31, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year		$	15.51		$	14.03		$	13.51		$	13.65		$	12.82
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income			0.22	(a)		0.23	(a)		0.24			0.24			0.26
Net realized and unrealized gain (loss) on investments			0.59			2.09			0.78			(0.07	)		0.97
Total Income from Investment Operations			0.81			2.32			1.02			0.17			1.23
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income			(0.23	)		(0.22	)		(0.24	)		(0.31	)		(0.40	)
Distributions from net realized gain on investments			(1.47	)		(0.62	)		(0.26	)		—			—
Total Dividends and Distributions to Shareholders			(1.70	)		(0.84	)		(0.50	)		(0.31	)		(0.40	)
Paid-in Capital from Redemption Fees			0.00			0.00	(b)		0.00	(b)		0.00	(b)		0.00	(b)
Net asset value, end of year		$	14.62		$	15.51		$	14.03		$	13.51		$	13.65
Total Return			5.12	%		16.76	%		7.85	%		1.47	%		9.78	%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of year (in 000's)		$26,857			$23,521			$19,290			$18,538			$18,427
RATIOS TO AVERAGE NET ASSETS:
Net investment income			1.45	%		1.54	%		1.82	%		1.64	%		2.13	%
Net expenses			1.10	%		1.10	%		1.10	%		1.20	%(c)		1.30	%
Gross expenses			1.30	%(d)		1.30	%(d)		1.30	%(d)		1.30	%(d)		1.30	%
Portfolio turnover rate			87	%		43	%		40	%		38	%		31	%
(a)	Calculated based on average shares outstanding during each year.
(b)	Less than $0.005 per share.
(c)	Effective October 1, 2011, the Adviser agreed to limit expenses at 1.10%. Prior to October 1, 2011, no expense cap was in place.
(d)	Reflects the expense ratio excluding any waivers and/or reimbursements.

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		33

��

Financial Highlights

CornerCap Small-Cap Value Fund

Selected data for each share of beneficial interest outstanding throughout the years indicated:		Year Ended March 31, 2015			Year Ended March 31, 2014				Year Ended March 31, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year		$	16.25		$	13.74			$	12.98		$	13.51		$	10.57
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)			0.03	(a)		0.00	(a)	(b)		0.10			0.03			(0.07	)
Net realized and unrealized gain (loss) on investments			1.21			4.51				1.46			(0.56	)		3.01
Total Income/(Loss) from Investment Operations			1.24			4.51				1.56			(0.53	)		2.94
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income			(0.02	)		—				(0.13	)		—			—
Distributions from net realized gain on investments			(1.92	)		(2.00	)			(0.67	)		—			—
Total Dividends and Distributions to Shareholders			(1.94	)		(2.00	)			(0.80	)		—			—
Paid-in Capital from Redemption Fees			0.00			0.00	(b)			0.00	(b)		0.00	(b)		0.00	(b)
Net asset value, end of year		$	15.55		$	16.25			$	13.74		$	12.98		$	13.51
Total Return			8.21	%		33.09	%			12.70	%		(3.92	)%		27.81	%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of year (in 000’s)		$85,177			$59,760				$36,600			$22,922			$22,872
RATIOS TO AVERAGE NET ASSETS:
Net investment income (loss)			0.17	%		0.02	%			0.74	%		0.30	%		(0.62	)%
Net expenses			1.30	%		1.30	%			1.30	%		1.40	%(c)		1.50	%
Gross expenses			1.50	%(d)		1.50	%(d)			1.50	%(d)		1.50	%(d)		1.50	%
Portfolio turnover rate			112	%		109	%			131	%		56	%		61	%
(a)	Calculated based on average shares outstanding during each year.
(b)	Less than $0.005 per share.
(c)	Effective October 1, 2011, the Adviser agreed to limit expenses at 1.30%. Prior to October 1, 2011, no expense cap was in place.
(d)	Reflects the expense ratio excluding any waivers and/or reimbursements.

	The accompanying notes to financial statements are an integral part of these financial statements.
34		www.cornercapfunds.com

Financial Highlights

CornerCap Large/Mid-Cap Value Fund

Selected data for each share of beneficial interest outstanding throughout the years indicated:		Year Ended March 31, 2015			Year Ended March 31, 2014			Year Ended  March 31, 2013			Year Ended March 31, 2012			Year Ended March 31, 2011(a)
PER SHARE OPERATING PERFORMANCE
Net asset value, beginning of year		$	13.87		$	10.88		$	10.07		$	10.41		$	9.16
INCOME/(LOSS) FROM INVESTMENT OPERATIONS:
Net investment income			0.15	(b)		0.12	(b)		0.10			0.08			0.02
Net realized and unrealized gain (loss) on investments			0.91			2.97			0.81			(0.34	)(c)		1.23
Total Income/(Loss) from Investment Operations			1.06			3.09			0.91			(0.26	)		1.25
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income			(0.14	)		(0.10	)		(0.10	)		(0.08	)		—
Distributions from net realized gain on investments			(1.04	)		—			—			—			—
Total Dividends and Distributions to Shareholders			(1.18	)		(0.10	)		(0.10	)		(0.08	)		—
Paid-in Capital from Redemption Fees			0.00	(d)		0.00	(d)		0.00	(d)		0.00	(d)		0.00	(d)
Net asset value, end of year		$	13.75		$	13.87		$	10.88		$	10.07		$	10.41
Total Return			7.46	%		28.42	%		9.16	%		(2.42	)%		13.65	%
RATIOS AND SUPPLEMENTAL DATA:
Net assets, end of year (in 000's)		$11,613			$10,852			$8,163			$5,560			$3,955
RATIOS TO AVERAGE NET ASSETS:
Net investment income			1.03	%		0.98	%		1.20	%		0.98	%		0.24	%
Net expenses			1.20	%		1.20	%		1.20	%		1.25	%(e)		1.38	%
Gross expenses(f)			1.50	%		1.50	%		1.50	%		1.50	%		1.50	%
Portfolio turnover rate			125	%		60	%		43	%		35	%		136	%
(a)	Prior to July 29, 2010, the CornerCap Large/Mid-Cap Value Fund was known as the CornerCap Contrarian Fund.
(b)	Calculated based on average shares outstanding during each year.
(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 Statements of Operations due to share transactions for the year.
(d)	Less than $0.005 per share.
(e)	Effective October 1, 2011, the Adviser agreed to limit expenses a 1.20%. Prior to October 1, 2011, the expense cap in place was 1.30%.
(f)	Reflects the expense ratio excluding any waivers and/or reimbursements.

	The accompanying notes to financial statements are an integral part of these financial statements.
Annual Report I March 31, 2015		35

Notes to Financial Statements
	March 31, 2015

1. ORGANIZATION

The CornerCap Group of Funds (the “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 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 4:00 p.m. Eastern time or, in the absence of recorded sales, at the closing bid price on such exchanges or such system. Based on obtaining active market quotes, common stocks and exchange traded funds are classified as Level 1 of the fair value hierarchy. Corporate bonds, municipal bonds, certificates of deposit and U.S. Government and Agency obligations are classified as Level 2 of the fair value hierarchy, and are priced based upon valuations provided by a recognized independent, third party pricing agent. Third‐party pricing agents value these securities by employing methodologies that utilize actual market transactions, broker‐supplied valuations, or other methodologies designed to identify the market value for such securities. Such methodologies generally consider such factors as security prices, yields, maturities, call features, ratings, and developments relating to specific securities in arriving at valuations. Unlisted securities that are not included on such exchanges or systems are valued at the 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 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 Funds’ Board of Trustees and will be classified as Level 2 or 3 within the fair value hierarchy, depending on the inputs used. The ability of issuers of debt securities held by the Funds to meet their obligations may be affected by economic and political developments.

Security Transactions, Investment Income and Other – Security transactions are recorded on the trade date. Realized gains and losses on sales of investments are calculated on the identified cost basis. Withholding taxes on foreign dividends have been provided in accordance with the Funds’ understanding of the applicable country’s tax rules and rates. Discounts and premiums on securities purchased are amortized over the lives of the respective securities, using the effective interest method. In the event of a security in default, a portion of interest receivable that was once recognized as interest income is written off and treated as a reduction of interest income.

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

36 www.cornercapfunds.com

Notes to Financial Statements
	March 31, 2015

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, 2015, 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 2012-2014 and as of and during the year ended March 31, 2015, 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 Statements of Operations. During the year, the Funds did not incur any interest or penalties.

Distributions to Shareholders – Distributions from net investment income and distributions of net realized capital gains, if any, will be declared and paid at least annually. Income and capital gains distributions are determined in accordance with income tax regulations, which may differ from 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;

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 the inputs used to value the Funds’ investments as of March 31, 2015:

Annual Report I March 31, 2015 37

Notes to Financial Statements
	March 31, 2015

CornerCap Balanced Fund:

	Valuation Inputs
Investments in Securities at Value*	Level 1		Level 2		Level 3		Total
Common Stocks	$	15,872,857	$	-	$	-	$	15,872,857
Exchange Traded Funds		1,059,546		-		-		1,059,546
Government Bond		-		520,803		-		520,803
Corporate Bonds		-		7,637,054		-		7,637,054
Municipal Bonds		-		463,031		-		463,031
Certificates of Deposit		-		250,409		-		250,409
Short-Term Investments		988,775		-		-		988,775
Total	$	17,921,178	$	8,871,297	$	-	$	26,792,475

CornerCap Small-Cap Value Fund:

	Valuation Inputs
Investments in Securities at Value*	Level 1		Level 2		Level 3		Total
Common Stocks	$	81,692,067	$	-	$	-	$	81,692,067
Short-Term Investments		3,960,528		-		-		3,960,528
Total	$	85,652,595	$	-	$	-	$	85,652,595

CornerCap Large/Mid-Cap Value Fund:

	Valuation Inputs
Investments in Securities at Value*	Level 1		Level 2		Level 3		Total
Common Stocks	$	11,503,417	$	-	$	-	$	11,503,417
Short-Term Investments		67,185		-				67,185
Total	$	11,570,602	$	-	$	-	$	11,570,602

* 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 year ended March 31, 2015.

For the year ended March 31, 2015, the Funds did not have significant unobservable inputs (Level 3) used in determining fair value of any investments. Therefore, a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value is not applicable. The Funds did not hold any derivative instruments at any time during the year.

3. SHARES OF BENEFICIAL INTEREST

On March 31, 2015, 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.

38 www.cornercapfunds.com

Notes to Financial Statements
	March 31, 2015

Transactions in shares of beneficial interest were as follows:

March 31, 2015 CornerCap Balanced Fund:5574					42094	#	#				41729
		Year Ended March 31, 2015						Year Ended March 31, 2014
		Shares			Amount			Shares			Amount
	Shares Sold	363,579		$	5,540,649			202,958		$	3,043,461
	Shares Issued in Reinvestment of Dividends	183,973			2,711,768			75,175			1,118,606
	Total	547,552			8,252,417			278,133			4,162,067
	Less Shares Redeemed	(226,634	)		(3,457,096	)		(137,286	)		(2,044,543	)
	Net increase	320,918		$	4,795,321			140,847		$	2,117,524

March 31, 2015 CornerCap Small-Cap Value Fund:5574					42094	#	#				41729
		Year Ended March 31, 2015						Year Ended March 31, 2014
		Shares			Amount			Shares			Amount
	Shares Sold	1,598,514		$	24,616,043			1,292,968		$	19,084,847
	Shares Issued in Reinvestment of Dividends	523,914			7,780,119			399,869			6,369,919
	Total	2,122,428			32,396,162			1,692,837			25,454,766
	Less Shares Redeemed	(321,780	)		(5,028,974	)		(680,126	)		(10,549,476	)
	Net increase	1,800,648		$	27,367,188			1,012,711		$	14,905,290

March 31, 2015 CornerCap Large/Mid-Cap Value Fund:5574					42094	#	#				41729
		Year Ended March 31, 2015						Year Ended March 31, 2014
		Shares			Amount			Shares			Amount
	Shares Sold	197,580		$	2,776,016			270,147		$	3,304,555
	Shares Issued in Reinvestment of Dividends	70,614			987,891			6,038			79,037
	Total	268,194			3,763,907			276,185			3,383,592
	Less Shares Redeemed	(206,515	)		(2,868,883	)		(243,894	)		(3,071,677	)
	Net increase	61,679		$	895,024			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

Annual Report I March 31, 2015 39

Notes to Financial Statements
	March 31, 2015

for federal income tax purposes. Also, due to the timing of dividend distributions, the fiscal year in which amounts are distributed may differ from the fiscal year in which the income or realized gain was recorded by the Funds. Distributions from net investment income and distributions of net realized capital gains, if any, will be declared and paid at least annually.

The tax character of distributions paid for the years ended March 31, 2015 and March 31, 2014 were as follows:

	CornerCap Balanced Fund
Distributions Paid From:	2015		2014
Ordinary Income	$	1,168,009	$	420,002
Long-term capital gains		1,546,598		700,002
Total	$	2,714,607	$	1,120,004

	CornerCap Small-Cap Value Fund
Distributions Paid From:	2015		2014
Ordinary Income	$	3,289,628	$	4,603,756
Long-term capital gains		4,503,589		1,786,741
Total	$	7,793,217	$	6,390,497

	CornerCap Large/Mid-Cap Value Fund
Distributions Paid From:	2015		2014
Ordinary Income	$	389,070	$	80,252
Long-term capital gains		601,045		-
Total	$	990,115	$	80,252

For the year ended March 31, 2015, each Fund recorded the following reclassifications to the accounts listed below. The reclassifications were primarily as a result of the differing book/tax treatment of investments in partnerships.

Paid-in-Capital Increase/(Decrease) Net Investment Income Increase/(Decrease) Accumulated Net Realized Gain

CornerCap Balanced Fund	$	-	$	-	$	-
CornerCap Small-Cap Value Fund		3,254		22,296		(25,550	)
CornerCap Large/Mid-Cap Value Fund		-		-		-

As of March 31, 2015, the components of distributable earnings on a tax basis were as follows:

		CornerCap Balanced Fund		CornerCap Small-Cap Value Fund		CornerCap Large/Mid-Cap Value Fund
Undistributed ordinary income	$	344,611	$	1,707,310	$	266,442
Accumulated net realized gain on   investments		1,885,234		2,732,955		1,366,994
Net unrealized appreciation on investments		654,322		6,905,715		311,802
Total	$	2,884,167	$	11,345,980	$	1,945,238

40 www.cornercapfunds.com

Notes to Financial Statements
	March 31, 2015

As of March 31, 2015, the Funds had no capital loss carryforwards to reduce the Funds’ taxable income arising from future net realized gains on investments.

The amount of net unrealized appreciation/(depreciation) and the cost of investment securities for tax purposes, including short-term securities at March 31, 2015, 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)	$	1,525,155		$	9,451,319		$	907,082
Gross unrealized depreciation (excess of tax cost over value)		(870,833	)		(2,545,604	)		(595,280	)
Net unrealized appreciation	$	654,322		$	6,905,715		$	311,802
Cost of investments for income tax purposes	$	26,138,153		$	78,746,880		$	11,258,800

5. INVESTMENT ADVISORY AND OTHER RELATED PARTY TRANSACTIONS

A. Each of the Funds has an Investment Advisory Agreement with CornerCap Investment Counsel (the “Adviser”), pursuant to which the Adviser receives an Advisory Fee from 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 Statements of Operations and the amount of current liabilities are reflected in the Statements of Assets and Liabilities.

In addition, each Fund and the Adviser have 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 Statements of Operations and the amount of current liabilities are reflected in the Statements of Assets and Liabilities.

The Adviser has contractually agreed to waive fees and reimburse each of the Funds so as to limit each Fund’s “Total Annual Fund Operating Expenses” (exclusive of 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.

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,

Annual Report I March 31, 2015 41

Notes to Financial Statements
	March 31, 2015

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.

Effective April 1, 2015, Atlantic Fund Administration, LLC (d/b/a Atlantic Fund Services) (“Atlantic”) will provide fund accounting and fund administration services to each Fund. Effective April 13, 2015, Atlantic will provide transfer agency services to the Funds. Pursuant to an Atlantic services agreement, the Adviser will pay Atlantic customary fees for its services from the Operating Services Fee it receives from the Funds. Atlantic also provides certain shareholder report production, and EDGAR conversion and filing services. Effective April 13, 2015, Foreside Fund Services, LLC will serve as each Fund’s distributor (the “Distributor”). The Distributor is not affiliated with the Adviser or Atlantic or their affiliates.

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 year ended March 31, 2015, 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	$	22,497,083	$	20,742,508
CornerCap Small-Cap Value Fund		89,308,667		70,580,166
CornerCap Large/Mid-Cap Value Fund		14,658,648		14,610,971

Investment transactions in U.S. Government and Agency securities for the year ended March 31, 2015 were as follows:

Fund	Cost of Investments Purchased			Proceeds from Investments Sold
CornerCap Balanced Fund	$	517,327	$	0

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, 2015, Charles Schwab & Co. held approximately 48.17%, 76.35% and 60.23% 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.

42 www.cornercapfunds.com

Notes to Financial Statements
	March 31, 2015

9. SUBSEQUENT EVENTS

Subsequent events occurring after the date of this report through the date these financial statements were issued have been evaluated for potential impact and the Funds have had no such events.

Annual Report I March 31, 2015 43

Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Trustees of

CornerCap Group of Funds

We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of CornerCap Group of Funds, comprising CornerCap Balanced Fund, CornerCap Small-Cap Value Fund, and CornerCap Large/Mid-Cap Value Fund(the “Funds”),as of March 31, 2015, and the related statementsof operations for the year then ended, the statements of 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.  These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  Our procedures included confirmation of securities owned as of March 31, 2015, by correspondence with the custodian and brokers.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of each of the Funds constituting CornerCap Group of Funds as of March 31, 2015, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

COHEN FUND AUDIT SERVICES, LTD.

Cleveland, Ohio

May 18, 2015

44 www.cornercapfunds.com

Additional Information (Unaudited)
	March 31, 2015

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. 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. TAX DESIGNATIONS

Of the ordinary income (including short‐term capital gain) distributions made by the Funds during the year ended December 31, 2014, the percentages qualifying for the dividend received deduction available to corporate shareholders are as follows:

Fund Name	Percentage
CornerCap Balanced Fund	24.59%
CornerCap Small-Cap Value Fund	25.73%
CornerCap Large/Mid-Cap Value Fund	31.27%

For the year ended December 31, 2014, the following percentages of total ordinary dividends paid by the Funds are qualifying dividends which may be subject to a maximum tax rate of 15%, as provided for by the Jobs and Growth Tax Relief Act of 2003. Complete information should have already been reported in conjunction with the reporting of your distributions on Form 1099‐DIV. The percentages were as follows:

Fund	Percentage
CornerCap Balanced Fund	26.92%
CornerCap Small-Cap Value Fund	24.99%
CornerCap Large/Mid-Cap Value Fund	32.09%

Pursuant to Section 852(b)(3) of the Internal Revenue Code, CornerCap Balanced Fund, CornerCap Small‐Cap Value Fund and CornerCap Large/Mid-Cap Value Fund designated $1,546,598, $4,503,589, and $601,045, respectively, as long‐term capital gain dividends.

Annual Report I March 31, 2015 45

Additional Information (Unaudited)
	March 31, 2015

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, 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, President, Chief Financial Officer, and Treasurer since 1992	3	Chief Executive Officer, CornerCap Investment Counsel.	None

INDEPENDENT TRUSTEES

Name, Address* and Year of Birth	Position with the Trust, Term of Office and Tenure	Number of Funds in Complex Overseen by Trustee	Principal Occupation(s) during past 5 years	Other Trusteeships/Directorships by Trustee
Richard L. Boger Born: 1946	Trustee since 1992	3	President & CEO, Lex-Tek International, Inc. (a financial services and software consulting company), (1991-present); Managing Trustee, Boger-Owen 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 Born: 1951	Trustee since 1994	3	Attorney, Letkoff, Duncan, Grimes, McSwain & Hass, (2003-present).	None
Leslie W. Gates Born: 1955	Trustee since 2006	3	Retired, 2005.	None
G. Harry Durity Born: 1946	Trustee (1992-2004, since 2010)	3	Director, Overland Solutions, Inc. (Private Compnay) 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:

Three Canal Plaza, Suite 600, Portland, ME 04101.

46 www.cornercapfunds.com

Additional Information (Unaudited)
	March 31, 2015

OFFICERS

Name, Address and Year of Birth	Position with the Trust, Term of Office and Tenure	Number of Funds in Complex Overseen by Trustee	Principal Occupation(s) during past 5 years	Other Trusteeships/Directorships by Trustee
Richard T. Bean The Peachtree, Suite 1700 1355 Peachtree St. NE Atlanta, GA 30309 Born: 1962	Vice President of the Funds since 1996	N/A	Vice President of the Funds and Portfolio Manager, CornerCap Investment Counsel.	N/A
John A. Hackney The Peachtree, Suite 1700 1355 Peachtree St. NE Atlanta, GA 30309 Born: 1966	Chief Compliance Officer since 2004 and Secretary of the Funds since 1999	N/A	Chief Compliance Officer, CornerCap Investment Counsel.	N/A
Gene A. Hoots The Peachtree, Suite 1700 1355 Peachtree St. NE Atlanta, GA 30309 Born: 1939	Vice President of the Funds since 1992	N/A	Vice President of the Funds and Chairman Emeritus of CornerCap Investment Counsel.	N/A

Annual Report I March 31, 2015 47

 

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 was filed as an Exhibit hereto under Item 12(a)(1) of this Form N-CSR on June 6, 2008. There have been no amendments to the Code of Ethics since it was last filed.

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  $25,600  in 2014 and $25,600  in 2015.

(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 2014 and $0 in 2015.

(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 $5,250 in 2014 and $5,250 in 2015. 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 2014 and $0 in 2015.

(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 2014 and $0 in 2015. 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. EXHIBITS.

(a)(1)  The registrant’s Code of Ethics for Principal Executive and Senior Financial Officers that applies to the registrant’s principal executive officer and principal financial officer and as described in Item 2 hereof is incorporated by reference to Exhibit 99.12(a)(1) to the registrant’s Form N-CSR for its fiscal year ended March 31, 2008, filed electronically with the Securities and Exchange Commission on June 6, 2008.

(a)(2) Certifications pursuant to Rule 30a-2(a) of the Act, and Section 302 of the Sarbanes-Oxley Act of 2002 (Exhibits filed herewith).

(a)(3)  Not applicable.

(b)      Certifications pursuant to Rule 30a-2(b) of the Act, and Section 906 of the Sarbanes-Oxley Act of 2002 (Exhibit filed herewith).

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 20, 2015                                          

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 20, 2015