As filed with the Securities and Exchange Commission on May 29, 2020
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04581
CORNERCAP GROUP OF FUNDS
The Peachtree, Suite 1700
1355 Peachtree Street NE
Atlanta, GA 30309
Zac Tackett
Apex Fund Services
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, 2019 – March 31, 2020
ITEM 1. REPORT TO STOCKHOLDERS.
Annual
Report
March
31,
2020
CornerCap
Balanced
Fund
CornerCap
Small-Cap
Value
Fund
CornerCap
Large/Mid-Cap
Value
Fund
Table
of
Contents
Manager’s
Report
to
Shareholders
1
CornerCap
Balanced
Fund
5
CornerCap
Small-Cap
Value
Fund
8
CornerCap
Large/Mid-Cap
Value
Fund
11
Fund
Expenses
14
Schedule
of
Investments
16
CornerCap
Balanced
Fund
16
CornerCap
Small-Cap
Value
Fund
23
CornerCap
Large/Mid-Cap
Value
Fund
31
Statements
of
Assets
and
Liabilities
36
Statements
of
Operations
37
Statements
of
Changes
in
Net
Assets
38
Financial
Highlights
39
CornerCap
Balanced
Fund
39
CornerCap
Small-Cap
Value
Fund
40
CornerCap
Large/Mid-Cap
Value
Fund
42
Notes
to
Financial
Statements
43
Report
of
Independent
Registered
Public
Accounting
Firm
52
Additional
Information
53
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
Annual
Report
I
March
31,
2020
1
Dear
Shareholders,
As
we
write
our
letter
this
year,
our
world
is
struggling
with
the
global
and
local
challenges
presented
by
Covid-19.
Our
hearts
go
out
to
those
affected
by
the
virus,
which
has
had
such
a
major
impact
on
people’s
health,
employment,
and
families.
We
are
grateful
in
particular
to
the
brave
people
on
the
front
lines,
providing
vital
health
services,
food,
and
shelter.
They
are
heroes.
Recognizing
that
the
world
is
much
larger
than
we
are,
our
firm
is
inviting
our
employees
to
assign
time
each
week
to
help
their
local
communities
where
appropriate.
One
of
our
employees,
through
a
local
Rotary
club,
is
spending
important
time
leading
his
club’s
initiatives
to
address
food
shortages
in
Atlanta,
both
in
the
immediate
sense
but
also
through
longer-term
solutions.
We
also
have
members
of
our
firm
helping
elderly
neighbors
with
grocery
shopping
or
giving
blood
platelets
every
week.
You
should
know
that
our
firm
has
made
the
transition
to
the
virtual,
work-at-home
environment
seamlessly.
We’ve
kept
leading
edge
technology
at
our
core
since
our
founding
more
than
35
years
ago.
At
this
point,
several
members
of
our
team
work
virtually
already.
When
the
states
in
which
we
have
employees
(Georgia,
North
Carolina,
South
Carolina,
and
Florida)
made
official
decisions
to
shelter
in
place,
our
team
activated
literally
overnight
and
continued
working
as
efficiently
as
we
do
in
our
physical
offices.
In
this
letter,
we’ll
provide
our
perspective
on
the
pandemic,
what
it
may
mean
for
the
economy,
and
the
implications
on
investment
strategy.
Our
Perspective
on
the
Pandemic
Until
a
vaccine
is
developed
(which
current
estimates
suggest
may
be
12
months
away)
or
the
virus
happens
to
run
its
course,
the
path
to
stability
is
not
likely
to
come
from
better
demand
or
improved
supply
chains,
although
they
will
play
an
important
supporting
role.
We
believe
that
it
will
come
instead
from
government
intervention,
prudent
pacing
within
the
health
care
system,
and
concerted
behavioral
change
by
large
populations.
The
major
challenge
is
that
efforts
to
contain
the
virus
have
brought
significant
parts
of
national
economies
to
a
complete
halt.
The
urgency
is
that
the
longer
it
takes
to
get
economies
running
again,
the
worse
the
level
of
lay-offs,
bankruptcies,
and
investment
in
the
future
becomes.
We
believe
that
time
is
of
the
essence
to
avoid
long-term
damage.
Where
Things
Stand
Currently
Since
the
historic
fall
in
March,
markets
have
begun
to
rebound.
Investors
appear
optimistic
that
we
now
have
a
directional
road
map
to
recovery—namely,
there’s
evidence
that
social
distancing
is
working,
and
governments
show
massive
willingness
to
support
markets,
industries,
workers
and
local
governments
through
unprecedented
stimulus.
As
the
US
explores
how
to
re-open
the
economy,
we
believe
three
elements
will
determine
the
pace
of
recovery:
Health
Policy,
including
testing
and
tracing;
Stimulus
Effectiveness;
and
Cultural
Values,
such
as
how
well
Americans
surrender
individual
freedoms
to
improve
the
public
good
through
monitoring
and
investigation.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
2
www.cornercapfunds.com
As
we
work
through
these
challenges,
we
believe
recovery
will
take
time,
perhaps
two
quarters
of
weak
growth
(typically
called
“U-shaped”)
or
a
double-dip
in
weakness
later
this
fall
after
a
moderate
summer
(“W-shaped”).
We
have
seen
pessimistic
projections
(“L-shaped”),
but
we
are
not
expecting
persistent
weakness
beyond
2021,
once
a
vaccine
is
found.
We
don’t
think
a
vaccine
(expected
in
12-18
months)
is
required
for
a
sustained
recovery,
and
while
we
expect
challenges
and
hiccups
in
the
rollout
of
health
policies,
stimulus
relief,
and
privacy
issues,
each
of
the
elements
should
gradually
gain
traction.
We
believe
we
can
draw
comparison
to
the
terrorist
attacks
on
9/11/01,
where
travelers
complied
with
heavy
screening
measures
at
airports
for
the
broader
public
good
and
economic
recovery.
Economic
News
Gets
Worse
Before
It
Gets
Better
As
initial
jobless
claims
show,
economic
growth
should
be
dismal
for
the
June
quarter.
We
expect
this
to
be
confirmed
widely
by
large
companies,
which
begin
reporting
earnings
as
we
write
this.
Bad
news
is
certainly
expected.
Analysts
already
project
a
decline
in
earnings
of
21%
for
the
June-ending
quarter
for
stocks
in
the
S&P
500
and
a
9%
decline
for
the
full
year,
according
to
FactSet,
vs.
an
original
annual
forecast
of
positive
9%
four
short
months
ago.
Still,
companies
are
admitting
they
have
little
visibility
about
trends
for
the
coming
year,
so
there
are
many
unknowns.
All-in,
we
still
think
it
is
most
likely
that
the
June
quarter
will
present
the
worst
news,
with
improvement
starting
to
various
degrees
later
this
year.
Full-year
GDP
growth
could
be
negative,
but
we
believe
that
the
worst
period
is
likely
to
be
in
summer.
Investment
Implications
for
the
CornerCap
Funds
Broadly,
we
recommend
that
shareholders
of
our
funds
not
change
their
overall
investment
objectives
as
an
emotional
reaction
to
market
turbulence.
We
have
written
a
lot
about
why
we
believe
that
trying
to
avoid
bad
news
by
“going
to
cash”
or
to
pick
market
bottoms
by
“taking
more
risk”
are
destructive
to
long-term
returns.
Missing
those
precious
few
days
of
the
biggest
market
gains
when
markets
rebound
has
clear
negative
effects.
We
encourage
shareholders
to
continue
to
use
our
funds
for
their
intended
purposes.
In
our
Large/Mid-Cap
Value
and
Small
Cap
Value
funds,
we
are
finding
good
quality
companies
and
asset
groups
priced
for
recession,
or
worse,
across
most
sectors
and
industries.
We
see
best
opportunities
in
higher
quality
cyclical
stocks
(those
tied
to
economic
recovery)
and
smaller
stocks.
Our
approach
puts
particular
emphasis
on
strong
cash
flow
generation
and
above
average
balance
sheets,
in
an
effort
to
provide
some
cushion
to
further
bad
news.
In
fixed
income,
we
continue
to
scrub
the
bond
allocation
in
our
Balanced
Fund
for
quality
and
sustainability.
Downgrades
to
credit
ratings
have
already
occurred,
requiring
us
to
be
as
proactive
as
possible.
Aggressive
support
by
the
Federal
Reserve
can
help
provide
some
near-term
stability
for
some
bonds.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
Annual
Report
I
March
31,
2020
3
A
Brief
Recap
of
2019
Performance
Before
wrapping
up,
we
share
some
brief
perspective
on
our
performance
for
the
year
ended
March
31,
2020.
As
the
chart
below
reveals,
we
have
been
through
a
challenging
year
compared
to
the
broader
benchmarks
that
include
high-growth
stocks.
Recall
that
valuation
and
diversification
are
two
core
tenants
of
our
investment
philosophy.
With
valuation,
we
seek
stocks
that
are
more
reasonably
priced
compared
to
their
fundamentals
and
expectations;
with
diversification,
we
seek
portfolios
that
aren’t
heavily
dependent
on
a
handful
of
stocks.
We
believe
that
following
these
two
components,
among
other
complementary
characteristics,
can
potentially
produce
strong
investment
results.
The
tenants
of
valuation
and
diversification
created
headwinds
for
us
when
compared
to
the
broader
benchmarks.
For
the
year,
as
has
been
the
case
for
the
past
few
years,
the
stocks
that
did
the
best
were
the
ones
with
the
best
momentum
and
highest
forecasts
for
growth—as
well
as
the
biggest
capitalizations.
These
stocks
also
tended
to
be
some
of
the
most
expensive.
Essentially,
the
winning
profile
was
the
opposite
of
how
we
recommend
positioning
portfolios.
As
we
described
in
last
year’s
annual
letter,
we
remain
comfortable
with
our
philosophy
and
remain
tilted
toward
opportunities
that
favor
valuation,
generally
in
smaller
stocks.
We
believe
these
stocks
present
the
best
long-term
opportunity
for
patient
investors.
The
following
NAV
returns
are
presented
as
of
3/31/2020,
are
net
of
management
fee
and
other
operating
costs,
and
reflect
the
reinvestment
of
distributions.
For
periods
over
one-year,
average
annual
returns
are
presented:
1
Yr
5
Yr
10
Yr
CORNERCAP
BALANCED
CBLFX
-10.14
%
1.23
%
4.60
%
Combined
60%
Russell
1000
Value
Index,
40%
Bloomberg
Barclays
U.S.
Intermediate
Government/Credit
Bond
Index
-7.56
%
2.55
%
6.12
%
Russell
1000
Value
Index
-17.17%
1.90%
7.67%
Bloomberg
Barclays
US
Intermediate
Government/Credit
Bond
Index
6.88%
2.76%
3.14%
CORNERCAP
LARGE/MID-CAP
VALUE
CMCRX
-17.97
%
0.27
%
5.41
%
Russell
1000
Value
Index
-17.17
%
1.90
%
7.57
%
CORNERCAP
SMALL-CAP
VALUE
–
INVESTOR
SHARES
CSCVX
-
25.91
%
-1.39
%
6.39
%
Russell
2000
Value
Index
-26.94
%
-2.42
%
4.79
%
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
4
www.cornercapfunds.com
Past
performance
does
not
guarantee
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
quoted.
To
obtain
performance
as
of
the
most
recent
month
end,
please
call
(888)
813-8637.
The
investment
return
and
principal
value
of
your
investment
will
fluctuate,
so
investors'
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
The
gross
expense
ratios
for
the
funds
are
as
follows:
1.30%
for
CSCVX
and
CMCRX,
and
1.21%
for
CBLFX.
The
Funds
charge
a
1.00%
redemption
fee
for
shares
redeemed
within
60
days
of
purchase.
The
funds
recently
experienced
significant
negative
short-term
performance
due
to
market
volatility
associated
with
the
COVID-19
pandemic.
Bottom
Line
Markets
should
remain
volatile
as
the
shape
of
the
recovery
emerges.
It
will
be
clear
only
in
hindsight.
The
coming
month
will
provide
initial
clues,
with
earnings
reports
for
large
companies
(we
expect
bad
news
and
limited
visibility
of
future
trends),
reports
on
how
well
direct
stimulus
reaches
unemployed
workers
and
small
businesses
(additional
rounds
of
stimulus
likely),
and
early
plans
for
getting
Americans
back
to
work
in
a
safe
manner.
Longer
term
issues—namely,
how
expanded
government
debt,
deficits,
and
manipulation
of
markets
and
industries
might
affect
future
economic
growth,
inflation
and
investor
confidence—are
important,
but
they
remain
in
the
background
given
the
immediate
focus
on
containing
the
virus
and
getting
national
economies
going
again.
CornerCap
Investment
Counsel
March
31,
2020
The
views
in
this
letter
reflect
the
opinions
of
CornerCap
Group
of
Funds
as
of
March
31,
2020
and
may
not
necessarily
reflect
the
same
views
on
the
date
this
letter
is
first
published
or
any
time
thereafter.
These
views
are
intended
to
help
shareholders
in
understanding
each
fund’s
investment
methodology
and
do
not
constitute
investment
advice.
Past
performance
does
not
guarantee
future
results.
Equity
securities,
such
as
common
stocks,
are
subject
to
market,
economic
and
business
risks
that
may
cause
their
prices
to
fluctuate.
Investments
made
in
small
and
mid-capitalization
companies
may
be
more
volatile
and
less
liquid
due
to
limited
resources
or
product
lines
and
more
sensitive
to
economic
factors.
The
balanced
fund
is
subject
to
the
same
risks
as
the
underlying
bonds
in
its
portfolio,
such
as
credit,
prepayment,
call
and
interest
rate
risk.
As
interest
rates
rise
the
value
of
bond
prices
will
decline.
If
a
Fund
invests
in
ETFs
(Exchange-Traded
Funds),
it
will
be
subject
to
the
same
risks
as
the
underlying
securities
in
which
the
ETF
invests
as
well
as
entails
higher
expenses
than
if
invested
into
the
underlying
ETF
directly.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
Annual
Report
I
March
31,
2020
5
CornerCap
Balanced
Fund
Investment
Performance
through
March
31,
2020
(In
Thousands)
Total
Return
for
the
period
ended
March
31,
2020
1
Year
5
Year
10
Year
Since
Inception
(a)
Gross
Expense
Ratio
Net
Expense
Ratio
(b)
CornerCap
Balanced
Fund
(c)
(10.14)%
1.23%
4.60%
4.88%
1.21%
1.01%
Combined
Index:
60%
Russell
1000
Value,
40%
Barclays
US
Intermediate
Government/Credit
Bond
Index
(7.56)%
2.55%
6.12%
6.13%
Russell
1000
Value
Index
(d)
(17.17)%
1.90%
7.67%
6.55%
Bloomberg
Barclays
US
Intermediate
Government/Credit
Bond
Index
(e)
6.88%
2.76%
3.14%
4.68%
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
6
www.cornercapfunds.com
Past
performance
does
not
guarantee
future
results.
The
performance
data
quoted
does
not
reflect
the
deduction
of
the
1%
redemption
fee
imposed
if
shares
are
redeemed
or
exchanged
within
sixty
days
of
purchase
or
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Data
quoted
represents
past
performance.
Investment
return
and
share
price
will
fluctuate
with
market
conditions,
and
investors
may
have
a
gain
or
loss
when
shares
are
sold.
Mutual
fund
performance
changes
over
time
and
currently
may
be
significantly
lower
than
stated
above.
Performance
is
updated
and
published
monthly.
Call
888-813-8637
for
month-end
performance
figures.
The
index
figures
do
not
reflect
any
deduction
for
fees,
expenses
or
taxes.
It
is
not
possible
to
invest
directly
in
an
index.
(a)
The
Balanced
Fund
began
operations
May
24,
1987.
(b)
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
all
taxes,
interest,
brokerage
fees
and
commissions,
acquired
fund
fees
and
expenses,
and
extraordinary
exp
enses)
to
not
more
than
1.00%.
To
the
extent
the
Balanced
Fund
incurs
excluded
expenses,
the
expense
ratio
will
increase.
The
current
contractual
agreement
cannot
be
terminated
prior
to
August
1,
2020
without
the
Board
of
Trustees'
approval.
(c)
The
Balanced
Fund’s
total
returns
include
the
reinvestment
of
dividend
and
capital
gain
distributions
but
have
not
been
adjusted
for
any
income
taxes
payable
by
shareholders
on
these
distributions.
(d)
The
Russell
1000®
Value
Index
measures
the
performance
of
those
companies
out
of
the
1,000
largest
U.S.
companies
(based
on
total
market
capitalization)
that
have
lower
price-to-book
ratios
and
lower
forecasted
growth
values.
(e)
The
Barclays
Capital
U.S.
Intermediate
Government/Credit
Index
measures
the
general
performance
of
fixed-income
securities
by
tracking
publicly
issued
U.S.
Treasury
and
debt
obligations
(excluding
mortgage-
backed
securities),
fixed-rate,
non-convertible,
investment-grade
corporate
debt
securities,
and
U.S.
dollar-
denominated,
SEC-registered
non-convertible
debt
issued
by
foreign
governmental
entities
or
international
agencies.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
Annual
Report
I
March
31,
2020
7
Sector
Allocation
as
a
Percentage
of
Total
Investments
at
March
31,
2020
*
*
These
allocations
may
not
reflect
the
current
or
future
position
of
the
portfolio.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
8
www.cornercapfunds.com
CornerCap
Small-Cap
Value
Fund
Investment
Performance
through
March
31,
2020
(In
Thousands)
Total
Return
for
the
period
ended
March
31,
2020
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
1
Year
5
Year
10
Year
Since
Inception
(a)
Expense
Ratio
CornerCap
Small-Cap
Value
Fund
--
Investor
Shares
(b)
(25.91)%
(1.39)%
6.39%
7.87%
1.30%
(c)
CornerCap
Small-Cap
Value
Fund
--
Institutional
Shares
(b)(d)
(25.72)%
(1.13)%
6.53%
7.92%
1.00%
Russell
2000
Value
Index
(e)
(29.64)%
(2.42)%
4.79%
8.71%
Russell
2000
Index
(f)
(23.99)%
(0.25)%
6.90%
8.18%
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
Annual
Report
I
March
31,
2020
9
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Data
quoted
represents
past
performance.
Investment
return
and
share
price
will
fluctuate
with
market
conditions,
and
investors
may
have
a
gain
or
loss
when
shares
are
sold.
Mutual
fund
performance
changes
over
time
and
currently
may
be
significantly
lower
than
stated
above.
Performance
is
updated
and
published
monthly.
Call
888-813-8637
for
month-end
performance
figures.
The
index
figures
do
not
reflect
any
deduction
for
fees,
expenses
or
taxes.
It
is
not
possible
to
invest
directly
in
an
index.
(a)
The
Small-Cap
Value
Fund’s
Investor
Shares
began
operations
on
September
30,
1992
and
the
Institutional
Shares
began
operations
on
December
29,
2015.
(b)
The
Small-Cap
Value
Fund’s
total
returns
include
the
reinvestment
of
dividend
and
capital
gain
distributions
but
have
not
been
adjusted
for
any
income
taxes
payable
by
shareholders
on
these
distributions.
(c)
The
total
Annual
Fund
Operating
Expenses
(gross)
is
1.30%.
The
Adviser
has
entered
into
a
contractual
agreement
with
the
Small-Cap
Value
Fund
–
Investor
Shares
under
which
it
has
agreed
to
waive
fees
and
reimburse
the
Small-Cap
Value
Fund
–
Investor
Shares
for
“Total
Annual
Fund
Operating
Expenses”
(exclusive
of
interest,
taxes,
brokerage
fees
and
commissions,
acquired
fund
fees
and
expenses,
and
extraordinary
expenses)
that
exceed
1.30%.
To
the
extent
the
Small-Cap
Value
Fund
–
Investor
Shares
incurs
excluded
expenses,
the
expense
ratio
will
increase.
The
current
contractual
agreement
cannot
be
terminated
prior
to
August
1,
2020
,
without
the
Board
of
Trustees’
approval.
(d)
The
Small-Cap
Value
Fund’s
Institutional
Shares
performance
for
the
5-year,
10-year
and
since
inception
periods
are
blended
average
returns
which
include
the
returns
of
the
Investor
Shares
prior
to
commencement
of
operations
of
the
Institutional
Shares.
(e)
The
Russell
2000®
Value
Index
measures
the
2,000
smallest
of
the
3,000
largest
U.S.
Companies
(based
on
total
market
capitalization)
that
have
lower
price-to-book
ratios
and
lower
forecasted
growth
values.
(f)
The
Russell
2000®
Index
is
an
index
that
measures
the
performance
of
the
2,000
smallest
companies
in
the
Russell
3000®
Index.
The
index
figures
do
not
reflect
any
deduction
for
fees,
expenses
or
taxes.
It
is
not
possible
to
invest
directly
in
an
index.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
10
www.cornercapfunds.com
Sector
Allocation
as
a
Percentage
of
Total
Investments
at
March
31,
2020*
*
These
allocations
may
not
reflect
the
current
or
future
position
of
the
portfolio.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
Annual
Report
I
March
31,
2020
11
CornerCap
Large/Mid-Cap
Value
Fund
Investment
Performance
through
March
31,
2020
(In
Thousands)
Total
Return
for
the
period
ended
March
31,
2020
Past
performance
does
not
guarantee
future
results.
The
performance
data
quoted
does
not
reflect
the
deduction
of
the
1%
redemption
fee
imposed
if
shares
are
redeemed
or
exchanged
within
sixty
days
of
purchase
or
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Data
quoted
represents
past
performance.
1
Year
5
Year
10
Year
Since
Inception
(a)
Gross
Expense
Ratio
Net
Expense
Ratio
(b)
CornerCap
Large/Mid-Cap
Value
Fund
(c)
(17.97)%
0.27%
5.41%
2.38%
1.30%
1.00%
Russell
1000
Value
Index
(d)
(17.17)%
1.90%
7.67%
5.61%
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
12
www.cornercapfunds.com
Investment
return
and
share
price
will
fluctuate
with
market
conditions,
and
investors
may
have
a
gain
or
loss
when
shares
are
sold.
Mutual
fund
performance
changes
over
time
and
currently
may
be
significantly
lower
than
stated
above.
Performance
is
updated
and
published
monthly.
Call
888-813-8637
for
month-end
performance
figures.
The
index
figures
do
not
reflect
any
deduction
for
fees,
expenses
or
taxes.
It
is
not
possible
to
invest
directly
in
an
index.
(a)
Effective
July
29,
2010,
the
CornerCap
Contrarian
Fund
changed
its
name
to
the
CornerCap
Large/Mid-
Cap
Value
Fund.
The
CornerCap
Large/Mid-Cap
Value
Fund
maintains
the
same
investment
objective
as
the
CornerCap
Contrarian
Fund:
long-term
capital
appreciation.
Prior
to
October
11,
2004,
the
CornerCap
Contrarian
Fund
was
known
as
the
CornerCap
Micro-Cap
Fund.
The
performance
figures
include
figures
for
the
Cornerstone
Micro-Cap
Fund,
L.P.,
which
was
a
private,
unregistered
fund
managed
by
CornerCap
Investment
Counsel,
Inc.
(the
“Adviser”)
that
began
operations
in
August
31,
1996
and
transferred
all
its
assets
to
the
Micro-Cap
Fund
on
July
27,
2000.
The
Cornerstone
Micro-Cap
Fund
was
managed
by
the
same
Adviser
as
the
Micro-Cap
Fund.
It
pursued
the
same
objectives
and
employed
the
same
strategies
as
the
Micro-Cap
Fund.
As
of
December
11,
2004,
the
Fund’s
strategy
was
changed
to
multi-cap
contrarian.
(b)
The
Adviser
has
contractually
agreed
to
waive
fees
and
reimburse
the
Large/Mid-Cap
Value
Fund
for
“Total
Annual
Fund
Operating
Expenses"
(exclusive
of
all
taxes,
interest,
brokerage
fees,
and
commissions,
acquired
fund
fees
and
expenses,
and
extraordinary
expenses)that
exceed
1.00%.
The
contractual
agreement
cannot
be
terminated
prior
to
August
1,
2020,
without
the
Board
of
Trustees’
approval.
(c)
The
Large/Mid-Cap
Value
Fund’s
total
returns
include
the
reinvestment
of
dividend
and
capital
gain
distributions
but
have
not
been
adjusted
for
any
income
taxes
payable
by
shareholders
on
these
distributions.
(d)
The
Russell
1000®
Value
Index
measures
the
performance
of
those
companies
out
of
the
1,000
largest
U.S.
companies
(based
on
total
market
capitalization)
that
have
lower
price-to-book
ratios
and
lower
forecasted
growth
values.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2020
Annual
Report
I
March
31,
2020
13
Sector
Allocation
as
a
Percentage
of
Total
Investments
at
March
31,
2020
*
*
These
allocations
may
not
reflect
the
current
or
future
position
of
the
portfolio.
Fund
Expenses
(Unaudited)
March
31,
2020
14
www.cornercapfunds.com
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,
2019
through
March
31,
2020.
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.
Fund
Expenses
(Unaudited)
March
31,
2020
Annual
Report
I
March
31,
2020
15
The
expenses
shown
in
the
table
are
meant
to
highlight
and
help
you
compare
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
account
maintenance
fees
or
charges
by
processing
organizations.
The
Funds
do
not
charge
any
account
maintenance
fees
or
sales
load,
but
do
charge
a
1.00%
redemption
fee
that
is
applicable
to
all
redemptions
(sales
or
exchanges)
made
within
sixty
(60)
days
of
an
initial
purchase
of
shares;
provided,
however,
that
the
redemption
fee
will
not
apply
if
the
shares
to
be
redeemed
are
held
in
a
retirement
account
subject
to
the
Employee
Retirement
Income
Security
Act.
Beginning
Account
Value
October
1,
2019
Ending
Account
Value
March
31,
2020
Expenses
Paid
During
Period
(a)
CornerCap
Balanced
Fund
Actual
$
1,000.00
$
873.81
$
4.68
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,020.00
$
5.05
CornerCap
Small-Cap
Value
Fund
Investor
Shares
Actual
$
1,000.00
$
711.09
$
5.56
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,018.50
$
6.56
Institutional
Shares
Actual
$
1,000.00
$
711.95
$
4.28
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,020.00
$
5.05
CornerCap
Large/Mid-Cap
Value
Fund
Actual
$
1,000.00
$
795.76
$
4.49
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,020.00
$
5.05
(a)
These
calculations
are
based
on
the
expenses
incurred
in
the
most
recent
fiscal
half-year.
The
period’s
annualized
six-month
expense
ratio
is 1.00%
for
CornerCap
Balanced
Fund,
1.30%
for
CornerCap
Small-Cap
Value
Fund
—
Investor
Shares,
1.00%
for
CornerCap
Small-Cap
Value
Fund
—
Institutional
Shares
and
1.00%
for
CornerCap
Large/Mid-Cap
Value
Fund,
respectively.
The
dollar
amounts
shown
as
“Expenses
Paid
During
Period” are
equal
to
the
annualized
expense
ratio
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
half-year
(183),
then
divided
by
366.
Schedule
of
Investments
March
31,
2020
CornerCap
Balanced
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
16
www.cornercapfunds.com
Shares
Fair
Value
COMMON
STOCK
(54.7%)
Aerospace
&
Defense
(
0.9%
)
Northrop
Grumman
Corp.
391
$
118,297
United
Technologies
Corp.
1,207
113,856
232,153
Auto
Parts
&
Equipment
(
0.4%
)
O'Reilly
Automotive,
Inc.
(a)
364
109,582
Banks
(
4.8%
)
Citigroup,
Inc.
2,788
117,431
Citizens
Financial
Group,
Inc.
6,131
115,324
Comerica,
Inc.
2,355
69,096
Fifth
Third
Bancorp
8,255
122,587
Huntington
Bancshares,
Inc.
12,200
100,162
JPMorgan
Chase
&
Co.
1,265
113,888
KeyCorp
9,500
98,515
Northern
Trust
Corp.
2,005
151,297
Regions
Financial
Corp.
9,726
87,242
The
Bank
of
New
York
Mellon
Corp.
3,125
105,250
U.S.
Bancorp
2,631
90,638
Wells
Fargo
&
Co.
3,130
89,831
1,261,261
Biotechnology
(
1.2%
)
Alexion
Pharmaceuticals,
Inc.
(a)
1,610
144,562
Biogen,
Inc.
(a)
550
174,009
318,571
Building
Materials
(
1.4%
)
DR
Horton,
Inc.
3,551
120,734
Johnson
Controls
International
PLC
3,547
95,627
Masco
Corp.
4,015
138,799
355,160
Chemicals
(
1.7%
)
CF
Industries
Holdings,
Inc.
3,380
91,936
Dow,
Inc.
5,024
146,902
Eastman
Chemical
Co.
2,120
98,749
PPG
Industries,
Inc.
1,230
102,828
440,415
Commercial
Services
(
1.8%
)
Automatic
Data
Processing,
Inc.
852
116,451
Cisco
Systems,
Inc.
3,240
127,364
FleetCor
Technologies,
Inc.
(a)
555
103,530
Schedule
of
Investments
March
31,
2020
CornerCap
Balanced
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
17
Annual
Report
I
March
31,
2020
Shares
Fair
Value
Commercial
Services
(1.8%)
(continued)
Paychex,
Inc.
1,990
$
125,211
472,556
Computers
(
3.0%
)
Alphabet,
Inc.,
Class A
(a)
155
180,102
Cognizant
Technology
Solutions
Corp.,
Class A
2,277
105,812
Fortinet,
Inc.
(a)
1,223
123,731
Hewlett
Packard
Enterprise
Co.
9,010
87,487
HP,
Inc.
7,785
135,148
Leidos
Holdings,
Inc.
1,720
157,638
789,918
Diversified
Financial
Services
(
2.4%
)
Ally
Financial,
Inc.
8,690
125,397
American
Express
Co.
1,290
110,437
BlackRock,
Inc.
345
151,790
E*TRADE
Financial
Corp.
3,825
131,274
Synchrony
Financial
6,858
110,345
629,243
Electric
(
3.5%
)
CenterPoint
Energy,
Inc.
8,988
138,865
DTE
Energy
Co.
1,181
112,160
Duke
Energy
Corp.
2,100
169,848
Edison
International
2,118
116,045
Evergy
,
Inc.
2,550
140,377
Sempra
Energy
931
105,194
The
Southern
Co.
2,359
127,716
910,205
Electrical
Components
&
Equipment
(
0.4%
)
Emerson
Electric
Co.
2,280
108,642
Electronics
(
0.5%
)
Garmin,
Ltd.
1,915
143,548
Entertainment
(
0.4%
)
Royal
Caribbean
Cruises,
Ltd.
1,350
43,430
ViacomCBS
,
Inc.,
Class B
3,801
53,252
96,682
Food
(
2.9%
)
General
Mills,
Inc.
3,040
160,421
The
Hershey
Co.
1,135
150,387
The
J.M.
Smucker
Co.
1,540
170,940
The
Kroger
Co.
3,938
118,613
Schedule
of
Investments
March
31,
2020
CornerCap
Balanced
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
18
www.cornercapfunds.com
Shares
Fair
Value
Food
(2.9%)
(continued)
Tyson
Foods,
Inc.,
Class A
2,530
$
146,411
746,772
Forest
Products
&
Paper
(
0.5%
)
International
Paper
Co.
3,845
119,695
Healthcare
Services
(
2.5%
)
Anthem,
Inc.
640
145,305
Hologic
,
Inc.
(a)
3,730
130,923
Laboratory
Corp.
of
America
Holdings
(a)
946
119,565
Quest
Diagnostics,
Inc.
1,590
127,677
Universal
Health
Services,
Inc.,
Class B
1,395
138,217
661,687
Insurance
(
2.9%
)
Aflac,
Inc.
3,250
111,280
Fidelity
National
Financial,
Inc.
4,906
122,061
Principal
Financial
Group,
Inc.
3,597
112,730
Prudential
Financial,
Inc.
1,750
91,245
The
Allstate
Corp.
1,465
134,385
The
Travelers
Cos.,
Inc.
1,044
103,721
Unum
Group
4,905
73,624
749,046
Machinery
-
Diversified
(
0.4%
)
Dover
Corp.
1,208
101,400
Miscellaneous
Manufacturing
(
2.2%
)
3M
Co.
985
134,462
Eaton
Corp.
PLC
1,995
154,992
Honeywell
International,
Inc.
1,020
136,466
Stanley
Black
&
Decker,
Inc.
1,473
147,300
573,220
Oil
&
Gas
(
2.8%
)
Chevron
Corp.
1,625
117,747
Diamondback
Energy,
Inc.
4,897
128,301
EOG
Resources,
Inc.
3,354
120,476
Marathon
Petroleum
Corp.
7,116
168,080
Phillips
66
1,720
92,278
Valero
Energy
Corp.
2,638
119,660
746,542
Pharmaceuticals
(
1.7%
)
Eli
Lilly
&
Co.
1,027
142,465
Johnson
&
Johnson
1,340
175,714
Schedule
of
Investments
March
31,
2020
CornerCap
Balanced
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
19
Annual
Report
I
March
31,
2020
Shares
Fair
Value
Pharmaceuticals
(1.7%)
(continued)
Merck
&
Co.,
Inc.
1,638
$
126,028
444,207
Private
Equity
(
0.4%
)
KKR
&
Co.,
Inc.,
Class A
4,920
115,472
Real
Estate
Investment
Trusts
(
2.5%
)
Boston
Properties,
Inc.
REIT
740
68,250
CubeSmart
REIT
2,442
65,421
Duke
Realty
Corp.
REIT
2,029
65,699
Equity
Residential
REIT
1,110
68,498
Essex
Property
Trust,
Inc.
REIT
262
57,703
Host
Hotels
&
Resorts,
Inc.
REIT
5,500
60,720
Kilroy
Realty
Corp.
REIT
912
58,094
Mid-America
Apartment
Communities,
Inc.
REIT
533
54,915
National
Retail
Properties,
Inc.
REIT
1,650
53,114
PS
Business
Parks,
Inc.
REIT
505
68,438
STORE
Capital
Corp.
REIT
2,485
45,028
665,880
Retail
(
5.0%
)
Altria
Group,
Inc.
3,975
153,713
Best
Buy
Co.,
Inc.
2,010
114,570
Booking
Holdings,
Inc.
(a)
100
134,532
Cigna
Corp.
824
145,996
CVS
Health
Corp.
2,005
118,957
Dollar
Tree,
Inc.
(a)
1,665
122,328
eBay,
Inc.
4,015
120,691
IAC/InterActiveCorp.
(a)
832
149,119
Philip
Morris
International,
Inc.
1,631
118,998
Target
Corp.
1,540
143,174
1,322,078
Semiconductors
(
2.1%
)
Applied
Materials,
Inc.
2,564
117,482
Fortive
Corp.
2,362
130,359
Intel
Corp.
2,855
154,513
Skyworks
Solutions,
Inc.
1,524
136,215
538,569
Software
(
2.8%
)
Electronic
Arts,
Inc.
(a)
1,188
119,002
GoDaddy
,
Inc.,
Class A
(a)
2,335
133,352
Oracle
Corp.
3,600
173,988
SS&C
Technologies
Holdings,
Inc.
3,730
163,448
Schedule
of
Investments
March
31,
2020
CornerCap
Balanced
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
20
www.cornercapfunds.com
Shares
Fair
Value
Software
(2.8%)
(continued)
Take-Two
Interactive
Software,
Inc.
(a)
1,123
$
133,199
722,989
Telecommunications
(
1.9%
)
AT&T,
Inc.
4,325
126,074
Comcast
Corp.,
Class A
4,155
142,849
DISH
Network
Corp.,
Class A
(a)
5,406
108,066
Facebook,
Inc.,
Class A
(a)
693
115,592
492,581
Transportation
(
1.7%
)
CSX
Corp.
2,525
144,682
Cummins,
Inc.
1,075
145,469
Delta
Air
Lines,
Inc.
5,035
143,649
433,800
TOTAL
COMMON
STOCK
(COST
$17,168,420)
14,301,874
Shares
Fair
Value
EXCHANGE
TRADED
FUNDS
(
5.1%
)
iShares
Morningstar
Mid-Capital
Value
ETF
1,552
165,940
iShares
Morningstar
Small-Capital
Value
ETF
1,912
163,208
Vanguard
S&P
Mid-Capital
400
ETF
3,514
341,912
Vanguard
S&P
Mid-Capital
400
Value
ETF
1,995
168,318
Vanguard
S&P
Small-Capital
600
ETF
3,296
337,774
Vanguard
S&P
Small-Capital
600
Value
ETF
1,925
166,532
TOTAL
EXCHANGE
TRADED
FUNDS
(COST
$1,279,436)
1,343,684
Principal
Amount
Fair
Value
GOVERNMENT
BOND
(
4.9%
)
U.S.
Treasury
Inflation
Indexed
Bonds,
2.00%,
01/15/2026
$
397,514
433,883
U.S.
Treasury
Inflation
Indexed
Note,
0.13%,
01/15/2022
569,480
561,680
U.S.
Treasury
Inflation
Indexed
Note,
0.63%,
01/15/2024
276,741
280,979
TOTAL
GOVERNMENT
BOND
(COST
$1,262,322)
1,276,542
CORPORATE
NON-CONVERTIBLE
BONDS
(
32.1%
)
Auto
Manufacturers
(
2.1%
)
Ford
Motor
Co.,
9.22%,
09/15/2021
275,000
265,842
General
Motors
Financial
Co.,
Inc.,
4.00%,
01/15/2025
325,000
288,842
554,684
Banks
(
4.9%
)
Bank
of
America
Corp.,
MTN,
4.75%,
08/15/2020
250,000
249,069
JPMorgan
Chase
&
Co.,
4.25%,
10/15/2020
400,000
404,804
JPMorgan
Chase
&
Co.,
3.88%,
09/10/2024
300,000
316,782
Schedule
of
Investments
March
31,
2020
CornerCap
Balanced
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
21
Annual
Report
I
March
31,
2020
Principal
Amount
Fair
Value
Banks
(4.9%)
(continued)
The
Goldman
Sachs
Group,
Inc.,
5.75%,
01/24/2022
$
300,000
$
318,306
1,288,961
Biotechnology
(
1.4%
)
Celgene
Corp.,
4.00%,
08/15/2023
360,000
378,594
Diversified
Financial
Services
(
1.2%
)
Fiserv,
Inc.,
4.75%,
06/15/2021
300,000
304,696
Electronics
(
2.2%
)
Arrow
Electronics,
Inc.,
5.13%,
03/01/2021
310,000
313,101
Avnet,
Inc.,
4.88%,
12/01/2022
250,000
260,324
573,425
Food
(
1.6%
)
Ingredion,
Inc.,
3.20%,
10/01/2026
380,000
407,394
Household
Products
(
1.4%
)
Whirlpool
Corp.,
4.00%,
03/01/2024
375,000
379,433
Insurance
(
2.4%
)
Humana,
Inc.,
2.50%,
12/15/2020
395,000
393,233
WR
Berkley
Corp.,
5.38%,
09/15/2020
230,000
230,404
623,637
Oil
&
Gas
(
1.2%
)
Valero
Energy
Partners
LP,
4.38%,
12/15/2026
370,000
310,592
Pharmaceuticals
(
3.8%
)
Cardinal
Health,
Inc.,
3.20%,
03/15/2023
320,000
321,599
Express
Scripts
Holding
Co.,
3.90%,
02/15/2022
640,000
665,626
987,225
Real
Estate
Investment
Trusts
(
1.1%
)
Weyerhaeuser
Co.,
7.13%,
07/15/2023
250,000
280,549
Retail
(
5.1%
)
CVS
Health
Corp.,
4.13%,
05/15/2021
300,000
306,900
CVS
Health
Corp.,
2.13%,
06/01/2021
350,000
349,168
Foot
Locker,
Inc.,
8.50%,
01/15/2022
385,000
365,750
Walgreen
Co.,
3.10%,
09/15/2022
305,000
305,535
1,327,353
Telecommunications
(
1.1%
)
eBay,
Inc.,
2.60%,
07/15/2022
300,000
300,764
Schedule
of
Investments
March
31,
2020
CornerCap
Balanced
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
22
www.cornercapfunds.com
Principal
Amount
Fair
Value
Transportation
(
2.6%
)
Delta
Air
Lines,
Inc.,
3.80%,
04/19/2023
$
330,000
$
310,119
Southwest
Airlines
Co.,
2.65%,
11/05/2020
370,000
365,933
676,052
TOTAL
CORPORATE
NON-CONVERTIBLE
BONDS
(COST
$8,493,757)
8,393,359
Shares
Fair
Value
SHORT-TERM
INVESTMENTS
(
2.9%
)
Federated
Treasury
Obligations
Money
Market
Fund,
Institutional
Shares,
0.31%
(b)
752,154
752,154
TOTAL
SHORT-TERM
INVESTMENTS
(COST
$752,154)
752,154
INVESTMENTS,
AT
VALUE
(COST
$28,956,089)
99.7%
26,067,613
TOTAL
ASSETS
IN
EXCESS
OF
OTHER
LIABILITIES
0.3%
85,041
NET
ASSETS
100.0%
$
26,152,654
(a)
Non-income
producing
security.
(b)
Dividend
yield
changes
daily
to
reflect
current
market
conditions.
Rate
was
the
quoted
yield
as
of
March
31,
2020.
Common
Abbreviations:
ETF
Exchange
Traded
Fund
LP
Limited
Partnership
MTN
Medium
Term
Note
PLC
Public
Limited
Company
REIT
Real
Estate
Investment
Trust
Schedule
of
Investments
March
31,
2020
CornerCap
Small-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
23
Annual
Report
I
March
31,
2020
Shares
Fair
Value
COMMON
STOCK
(95.1%)
Aerospace
&
Defense
(
1.0%
)
Barnes
Group,
Inc.
9,977
$
417,338
Ducommun,
Inc.
(a)
3,284
81,607
Kaman
Corp.
9,934
382,161
881,106
Auto
Parts
&
Equipment
(
1.4%
)
Gentherm
,
Inc.
(a)
13,265
416,521
Methode
Electronics,
Inc.
15,230
402,529
Standard
Motor
Products,
Inc.
10,877
452,157
1,271,207
Banks
(
13.6%
)
Associated
Banc-Corp.
25,860
330,749
Bridge
Bancorp,
Inc.
17,035
360,461
CIT
Group,
Inc.
18,734
323,349
Civista
Bancshares,
Inc.
23,939
358,127
CNB
Financial
Corp.
19,240
363,059
ConnectOne
Bancorp,
Inc.
25,040
336,538
Customers
Bancorp,
Inc.
(a)
24,065
263,030
Enterprise
Financial
Services
Corp.
12,650
353,062
Financial
Institutions,
Inc.
18,800
341,032
First
Bancorp/Southern
Pines
NC
15,632
360,787
First
Foundation,
Inc.
36,302
371,006
FNB
Corp.
47,950
353,392
Hancock
Whitney
Corp.
12,910
252,003
Horizon
Bancorp,
Inc./IN
39,733
391,767
IBERIABANK
Corp.
7,330
265,053
Independent
Bank
Corp.
29,361
377,876
Merchants
Bancorp/IN
27,179
412,577
Meta
Financial
Group,
Inc.
16,563
359,748
Metrocity
Bankshares
,
Inc.
30,449
357,471
Midland
States
Bancorp,
Inc.
20,635
360,906
MidWestOne
Financial
Group,
Inc.
17,535
367,183
Old
Second
Bancorp,
Inc.
52,979
366,085
PacWest
Bancorp
21,497
385,226
Peapack
Gladstone
Financial
Corp.
25,082
450,222
QCR
Holdings,
Inc.
16,315
441,647
Republic
Bancorp,
Inc.,
Class A
11,558
381,761
Sandy
Spring
Bancorp,
Inc.
16,370
370,617
Southern
First
Bancshares,
Inc.
(a)
13,798
391,449
Synovus
Financial
Corp.
14,545
255,410
Umpqua
Holdings
Corp.
30,555
333,050
Valley
National
Bancorp
50,350
368,059
Webster
Financial
Corp.
16,528
378,491
Schedule
of
Investments
March
31,
2020
CornerCap
Small-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
24
www.cornercapfunds.com
Shares
Fair
Value
Banks
(13.6%)
(continued)
Western
Alliance
Bancorp.
12,774
$
391,012
Wintrust
Financial
Corp.
8,370
275,038
12,047,243
Beverages
-
Non-alcoholic
(
0.5%
)
Coca-Cola
Consolidated,
Inc.
2,030
423,316
Building
Materials
(
6.0%
)
ABM
Industries,
Inc.
17,162
418,066
American
Woodmark
Corp.
(a)
6,949
316,666
Boise
Cascade
Co.
13,716
326,167
Builders
FirstSource
,
Inc.
(a)
22,145
270,833
Caesarstone
,
Ltd.
(a)
36,681
387,718
Foundation
Building
Materials,
Inc.
(a)
35,052
360,685
Gibraltar
Industries,
Inc.
(a)
10,375
445,295
GMS,
Inc.
(a)
19,175
301,623
M/I
Homes,
Inc.
(a)
19,485
322,087
MDU
Resources
Group,
Inc.
17,850
383,775
Meritage
Homes
Corp.
(a)
8,924
325,815
Patrick
Industries,
Inc.
12,257
345,157
Quanex
Building
Products
Corp.
28,233
284,589
TopBuild
Corp.
(a)
4,795
343,514
Universal
Forest
Products,
Inc.
11,640
432,892
5,264,882
Chemicals
(
2.1%
)
Cabot
Corp.
14,960
390,755
Haynes
International,
Inc.
20,562
423,783
HB
Fuller
Co.
13,892
388,003
Minerals
Technologies,
Inc.
10,465
379,461
Orion
Engineered
Carbons
SA
37,821
282,145
1,864,147
Commercial
Services
(
4.2%
)
AMN
Healthcare
Services,
Inc.
(a)
7,681
444,039
ASGN,
Inc.
(a)
10,512
371,284
Barrett
Business
Services,
Inc.
5,775
228,921
CoreLogic
,
Inc.
11,573
353,439
HMS
Holdings
Corp.
(a)
13,396
338,517
Kforce
,
Inc.
16,131
412,470
National
Research
Corp.,
Class A
8,482
385,761
R1
RCM,
Inc.
(a)
41,917
381,025
Resources
Connection,
Inc.
36,515
400,570
Schedule
of
Investments
March
31,
2020
CornerCap
Small-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
25
Annual
Report
I
March
31,
2020
Shares
Fair
Value
Commercial
Services
(4.2%)
(continued)
The
Hackett
Group,
Inc.
33,477
$
425,827
3,741,853
Computers
(
2.9%
)
CommVault
Systems,
Inc.
(a)
9,680
391,847
MAXIMUS,
Inc.
6,310
367,242
Mitek
Systems,
Inc.
(a)
72,615
572,206
Perspecta
,
Inc.
21,380
389,971
QuinStreet
,
Inc.
(a)
47,607
383,236
Super
Micro
Computer,
Inc.
(a)
19,488
414,705
2,519,207
Diversified
Financial
Services
(
2.9%
)
Artisan
Partners
Asset
Management,
Inc.,
Class A
15,825
340,079
Eaton
Vance
Corp.
12,829
413,735
Evercore
,
Inc.,
Class A
6,385
294,093
Federated
Hermes,
Inc.,
Class B
17,070
325,184
Houlihan
Lokey
,
Inc.
6,354
331,171
Moelis
&
Co.,
Class A
13,940
391,714
PJT
Partners,
Inc.
11,370
493,344
2,589,320
Electric
(
1.9%
)
ALLETE,
Inc.
6,040
366,507
Black
Hills
Corp.
7,520
481,506
NorthWestern
Corp.
8,045
481,332
Otter
Tail
Corp.
8,574
381,200
1,710,545
Electrical
Components
&
Equipment
(
2.0%
)
Atkore
International
Group,
Inc.
(a)
14,810
312,047
Jabil,
Inc.
15,010
368,946
Knowles
Corp.
(a)
25,807
345,297
Rambus,
Inc.
(a)
34,640
384,504
Sanmina
Corp.
(a)
13,711
374,036
1,784,830
Electronics
(
1.8%
)
Plexus
Corp.
(a)
7,445
406,199
SYNNEX
Corp.
4,775
349,053
Tech
Data
Corp.
(a)
2,757
360,753
Universal
Electronics,
Inc.
(a)
11,603
445,207
1,561,212
Engineering
&
Construction
(
0.7%
)
Mistras
Group,
Inc.
(a)
48,770
207,760
Schedule
of
Investments
March
31,
2020
CornerCap
Small-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
26
www.cornercapfunds.com
Shares
Fair
Value
Engineering
&
Construction
(0.7%)
(continued)
Primoris
Services
Corp.
26,480
$
421,032
628,792
Entertainment
(
0.3%
)
IMAX
Corp.
(a)
26,645
241,137
Food
(
0.6%
)
Sprouts
Farmers
Market,
Inc.
(a)
28,214
524,498
Forest
Products
&
Paper
(
0.8%
)
Neenah,
Inc.
8,192
353,321
Schweitzer-Mauduit
International,
Inc.
12,510
348,028
701,349
Hand
&
Machine
Tools
(
0.9%
)
Columbus
McKinnon
Corp.
15,145
378,625
Regal
Beloit
Corp.
6,218
391,423
770,048
Health
Care
(
0.6%
)
HealthStream
,
Inc.
(a)
21,709
519,931
Healthcare
Products
(
3.1%
)
CONMED
Corp.
6,921
396,365
Globus
Medical,
Inc.
(a)
8,919
379,325
Integra
LifeSciences
Holdings
Corp.
(a)
10,415
465,238
Lantheus
Holdings,
Inc.
(a)
21,505
274,404
Natus
Medical,
Inc.
(a)
21,555
498,567
NextGen
Healthcare,
Inc.
(a)
37,204
388,410
Quidel
Corp.
(a)
3,491
341,455
2,743,764
Healthcare
Services
(
2.4%
)
Charles
River
Laboratories
International,
Inc.
(a)
4,400
555,324
Fulgent
Genetics,
Inc.
(a)
30,964
333,173
Magellan
Health,
Inc.
(a)
7,229
347,787
The
Ensign
Group,
Inc.
10,830
407,316
The
Providence
Service
Corp.
(a)
8,995
493,646
2,137,246
Home
Furnishings
(
0.4%
)
La-Z-Boy,
Inc.
17,725
364,249
Schedule
of
Investments
March
31,
2020
CornerCap
Small-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
27
Annual
Report
I
March
31,
2020
Shares
Fair
Value
Hotels
(
0.3%
)
Extended
Stay
America,
Inc.
36,455
$
266,486
Insurance
(
5.3%
)
CNO
Financial
Group,
Inc.
29,994
371,626
Essent
Group,
Ltd.
11,420
300,803
FBL
Financial
Group,
Inc.,
Class A
9,315
434,731
Heritage
Insurance
Holdings,
Inc.
38,485
412,175
Mercury
General
Corp.
9,632
392,215
MGIC
Investment
Corp.
41,292
262,204
National
General
Holdings
Corp.
24,085
398,607
Old
Republic
International
Corp.
24,699
376,660
Primerica,
Inc.
4,119
364,449
Radian
Group,
Inc.
23,255
301,152
Stewart
Information
Services
Corp.
13,851
369,406
Unum
Group
22,605
339,301
Watford
Holdings,
Ltd.
(a)
22,279
326,387
4,649,716
Machinery
-
Construction
&
Mining
(
0.4%
)
AGCO
Corp.
7,709
364,250
Machinery
-
Diversified
(
0.8%
)
Cactus,
Inc.
29,207
338,801
Curtiss-Wright
Corp.
4,337
400,782
739,583
Metal
Fabricate
&
Hardware
(
2.6%
)
AZZ,
Inc.
13,555
381,167
Carpenter
Technology
Corp.
18,351
357,844
Commercial
Metals
Co.
25,810
407,540
Mueller
Industries,
Inc.
18,735
448,516
The
Timken
Co.
10,510
339,893
Worthington
Industries,
Inc.
15,140
397,425
2,332,385
Miscellaneous
Manufacturing
(
4.4%
)
Acuity
Brands,
Inc.
4,942
423,332
Albany
International
Corp.
7,253
343,284
Carriage
Services,
Inc.
24,205
390,911
Crane
Co.
7,882
387,637
Ichor
Holdings,
Ltd.
(a)
16,914
324,072
ITT,
Inc.
8,628
391,366
Myers
Industries,
Inc.
33,630
361,522
Powell
Industries,
Inc.
14,812
380,224
Standex
International
Corp.
7,500
367,650
Trinseo
SA
12,925
234,072
Schedule
of
Investments
March
31,
2020
CornerCap
Small-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
28
www.cornercapfunds.com
Shares
Fair
Value
Miscellaneous
Manufacturing
(4.4%)
(continued)
Unifi,
Inc.
(a)
24,700
$
285,285
3,889,355
Office
Automation&Equip
(
0.4%
)
Xerox
Holdings
Corp.
19,424
367,891
Office
Furnishings
(
1.4%
)
Herman
Miller,
Inc.
12,235
271,617
HNI
Corp.
13,889
349,864
Interface,
Inc.
33,375
252,315
Knoll,
Inc.
35,486
366,216
1,240,012
Oil
&
Gas
(
2.9%
)
Berry
Corp.
108,270
260,931
HollyFrontier
Corp.
15,781
386,792
New
Jersey
Resources
Corp.
12,958
440,183
Par
Pacific
Holdings,
Inc.
(a)
26,418
187,568
Parsley
Energy,
Inc.,
Class A
15,084
86,431
Southwest
Gas
Holdings,
Inc.
6,990
486,225
Spire,
Inc.
6,180
460,286
Texas
Pacific
Land
Trust
742
281,968
2,590,384
Pharmaceuticals
(
1.6%
)
Emergent
BioSolutions
,
Inc.
(a)
8,911
515,590
Horizon
Therapeutics
PLC
(a)
14,473
428,690
PRA
Health
Sciences,
Inc.
(a)
5,065
420,598
1,364,878
Real
Estate
Investment
Trusts
(
9.7%
)
American
Assets
Trust,
Inc.
REIT
13,108
327,700
American
Campus
Communities,
Inc.
REIT
12,531
347,735
Apple
Hospitality
REIT,
Inc.
31,310
287,113
Armada
Hoffler
Properties,
Inc.
REIT
21,626
231,398
Brandywine
Realty
Trust
REIT
33,739
354,934
Brixmor
Property
Group,
Inc.
REIT
31,387
298,177
CareTrust
REIT,
Inc.
24,184
357,681
CoreCivic
,
Inc.
REIT
30,404
339,613
CorEnergy
Infrastructure
Trust,
Inc.
REIT
10,479
192,604
Corporate
Office
Properties
Trust
REIT
17,145
379,419
Empire
State
Realty
Trust,
Inc.
REIT
34,817
311,960
First
Industrial
Realty
Trust,
Inc.
REIT
11,411
379,188
Four
Corners
Property
Trust,
Inc.
REIT
18,330
342,954
Franklin
Street
Properties
Corp.
REIT
64,308
368,485
Getty
Realty
Corp.
REIT
17,090
405,717
Schedule
of
Investments
March
31,
2020
CornerCap
Small-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
29
Annual
Report
I
March
31,
2020
Shares
Fair
Value
Real
Estate
Investment
Trusts
(9.7%)
(continued)
Highwoods
Properties,
Inc.
REIT
9,319
$
330,079
LTC
Properties,
Inc.
REIT
10,880
336,192
McGrath
RentCorp
6,895
361,160
National
Health
Investors,
Inc.
REIT
6,690
331,289
Newmark
Group,
Inc.,
Class A
48,902
207,833
Outfront
Media,
Inc.
REIT
16,478
222,123
PS
Business
Parks,
Inc.
REIT
2,735
370,647
Rayonier,
Inc.
REIT
16,565
390,106
Service
Properties
Trust
REIT
47,698
257,569
SITE
Centers
Corp.
REIT
53,335
277,875
Urstadt
Biddle
Properties,
Inc.,
Class A
REIT
22,696
320,014
Weingarten
Realty
Investors
REIT
17,300
249,639
8,579,204
Recreational
Vehicles
(
0.4%
)
Malibu
Boats,
Inc.,
Class A
(a)
10,849
312,343
Resorts/Theme
Parks
(
0.3%
)
Marriott
Vacations
Worldwide
Corp.
5,385
299,298
Retail
(
2.7%
)
Capri
Holdings,
Ltd.
(a)
19,287
208,107
Deckers
Outdoor
Corp.
(a)
3,269
438,046
J
Alexander's
Holdings,
Inc.
(a)
56,610
216,816
MarineMax
,
Inc.
(a)
38,730
403,567
PriceSmart
,
Inc.
7,797
409,732
PVH
Corp.
8,376
315,273
World
Fuel
Services
Corp.
15,301
385,279
2,376,820
Savings
&
Loans
(
2.1%
)
Berkshire
Hills
Bancorp,
Inc.
26,166
388,827
Flagstar
Bancorp,
Inc.
19,128
379,308
FS
Bancorp,
Inc.
11,075
398,700
Provident
Financial
Services,
Inc.
29,567
380,232
Sterling
Bancorp
27,700
289,465
1,836,532
Schools
(
0.5%
)
Perdoceo
Education
Corp.
(a)
39,947
431,028
Semiconductors
(
1.4%
)
Amkor
Technology,
Inc.
(a)
49,345
384,398
FormFactor
,
Inc.
(a)
22,001
442,000
Schedule
of
Investments
March
31,
2020
CornerCap
Small-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
30
www.cornercapfunds.com
Shares
Fair
Value
Semiconductors
(1.4%)
(continued)
MaxLinear
,
Inc.
(a)
37,415
$
436,633
1,263,031
Software
(
4.8%
)
American
Software,
Inc.,
Class A
36,115
513,194
ChannelAdvisor
Corp.
(a)
62,912
456,741
Cornerstone
OnDemand
,
Inc.
(a)
12,595
399,891
ePlus
,
Inc.
(a)
6,677
418,114
NeoPhotonics
Corp.
(a)
63,180
458,055
Omnicell
,
Inc.
(a)
7,095
465,290
Progress
Software
Corp.
13,095
419,040
SPS
Commerce,
Inc.
(a)
11,225
522,075
Verint
Systems,
Inc.
(a)
12,645
543,735
4,196,135
Storage
&
Warehousing
(
0.4%
)
Mobile
Mini,
Inc.
14,685
385,188
Telecommunications
(
0.5%
)
Telephone
&
Data
Systems,
Inc.
24,288
407,067
Transportation
(
2.1%
)
Air
Transport
Services
Group,
Inc.
(a)
24,292
444,058
Fortress
Transportation
&
Infrastructure
Investors,
LLC
39,152
321,046
Marten
Transport,
Ltd.
13,890
285,023
Schneider
National,
Inc.,
Class B
27,220
526,435
SkyWest,
Inc.
8,840
231,519
1,808,081
TOTAL
COMMON
STOCK
(COST
$111,941,376)
83,989,549
INVESTMENTS,
AT
VALUE
(COST
$111,941,376)
95.1%
83,989,549
TOTAL
ASSETS
IN
EXCESS
OF
OTHER
LIABILITIES
4.9%
4,372,770
NET
ASSETS
100.0%
$
88,362,319
(a)
Non-income
producing
security.
Common
Abbreviations:
LLC
Limited
Liability
Company
PLC
Public
Limited
Company
REIT
Real
Estate
Investment
Trust
Schedule
of
Investments
March
31,
2020
CornerCap
Large/Mid-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
31
Annual
Report
I
March
31,
2020
Shares
Fair
Value
COMMON
STOCK
(97.0%)
Aerospace
&
Defense
(
1.8%
)
Northrop
Grumman
Corp.
818
$
247,486
United
Technologies
Corp.
2,370
223,562
471,048
Auto
Parts
&
Equipment
(
0.9%
)
O'Reilly
Automotive,
Inc.
(a)
751
226,089
Banks
(
9.1%
)
Citigroup,
Inc.
4,792
201,839
Citizens
Financial
Group,
Inc.
11,169
210,089
Comerica,
Inc.
4,415
129,536
Fifth
Third
Bancorp
13,940
207,009
Huntington
Bancshares,
Inc.
22,680
186,203
JPMorgan
Chase
&
Co.
2,365
212,921
KeyCorp
16,925
175,512
Northern
Trust
Corp.
3,145
237,321
Regions
Financial
Corp.
18,705
167,784
The
Bank
of
New
York
Mellon
Corp.
6,397
215,451
U.S.
Bancorp
6,064
208,905
Wells
Fargo
&
Co.
5,830
167,321
2,319,891
Biotechnology
(
1.9%
)
Alexion
Pharmaceuticals,
Inc.
(a)
2,940
263,982
Biogen,
Inc.
(a)
660
208,811
472,793
Building
Materials
(
2.5%
)
DR
Horton,
Inc.
6,108
207,672
Johnson
Controls
International
PLC
7,293
196,619
Masco
Corp.
6,395
221,075
625,366
Chemicals
(
3.1%
)
CF
Industries
Holdings,
Inc.
6,290
171,088
Dow,
Inc.
8,467
247,575
Eastman
Chemical
Co.
3,845
179,100
PPG
Industries,
Inc.
2,445
204,402
802,165
Commercial
Services
(
3.4%
)
Automatic
Data
Processing,
Inc.
1,669
228,119
Cisco
Systems,
Inc.
5,321
209,168
FleetCor
Technologies,
Inc.
(a)
1,030
192,136
Schedule
of
Investments
March
31,
2020
CornerCap
Large/Mid-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
32
www.cornercapfunds.com
Shares
Fair
Value
Commercial
Services
(3.4%)
(continued)
Paychex,
Inc.
3,615
$
227,456
856,879
Computers
(
5.3%
)
Alphabet,
Inc.,
Class A
(a)
270
313,726
Cognizant
Technology
Solutions
Corp.,
Class A
4,398
204,375
Fortinet,
Inc.
(a)
2,105
212,963
Hewlett
Packard
Enterprise
Co.
18,015
174,926
HP,
Inc.
14,432
250,539
Leidos
Holdings,
Inc.
2,221
203,555
1,360,084
Diversified
Financial
Services
(
4.0%
)
Ally
Financial,
Inc.
15,351
221,515
American
Express
Co.
2,575
220,446
BlackRock,
Inc.
532
234,064
E*TRADE
Financial
Corp.
6,315
216,731
Synchrony
Financial
7,790
125,341
1,018,097
Electric
(
5.8%
)
CenterPoint
Energy,
Inc.
11,216
173,287
DTE
Energy
Co.
2,312
219,571
Duke
Energy
Corp.
2,481
200,663
Edison
International
3,792
207,764
Evergy
,
Inc.
4,540
249,927
Sempra
Energy
2,005
226,545
The
Southern
Co.
3,673
198,856
1,476,613
Electrical
Components
&
Equipment
(
0.8%
)
Emerson
Electric
Co.
4,295
204,657
Electronics
(
0.9%
)
Garmin,
Ltd.
3,175
237,998
Entertainment
(
0.7%
)
Royal
Caribbean
Cruises,
Ltd.
2,342
75,342
ViacomCBS
,
Inc.,
Class B
7,035
98,561
173,903
Food
(
4.6%
)
General
Mills,
Inc.
3,728
196,726
The
Hershey
Co.
2,150
284,875
The
J.M.
Smucker
Co.
2,390
265,290
The
Kroger
Co.
6,989
210,509
Schedule
of
Investments
March
31,
2020
CornerCap
Large/Mid-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
33
Annual
Report
I
March
31,
2020
Shares
Fair
Value
Food
(4.6%)
(continued)
Tyson
Foods,
Inc.,
Class A
3,877
$
224,362
1,181,762
Forest
Products
&
Paper
(
0.8%
)
International
Paper
Co.
6,435
200,322
Healthcare
Services
(
4.3%
)
Anthem,
Inc.
1,210
274,719
Hologic
,
Inc.
(a)
6,278
220,358
Laboratory
Corp.
of
America
Holdings
(a)
1,647
208,164
Quest
Diagnostics,
Inc.
2,300
184,690
Universal
Health
Services,
Inc.,
Class B
2,180
215,994
1,103,925
Insurance
(
5.4%
)
Aflac,
Inc.
5,695
194,997
Fidelity
National
Financial,
Inc.
8,656
215,361
Principal
Financial
Group,
Inc.
6,582
206,280
Prudential
Financial,
Inc.
3,035
158,245
The
Allstate
Corp.
2,770
254,092
The
Travelers
Cos.,
Inc.
2,020
200,687
Unum
Group
10,094
151,511
1,381,173
Machinery
-
Diversified
(
0.9%
)
Dover
Corp.
2,620
219,923
Miscellaneous
Manufacturing
(
3.6%
)
3M
Co.
1,501
204,901
Eaton
Corp.
PLC
3,117
242,160
Honeywell
International,
Inc.
1,795
240,153
Stanley
Black
&
Decker,
Inc.
2,224
222,400
909,614
Oil
&
Gas
(
4.5%
)
Chevron
Corp.
2,714
196,656
Diamondback
Energy,
Inc.
7,605
199,251
EOG
Resources,
Inc.
5,851
210,168
Marathon
Petroleum
Corp.
9,067
214,163
Phillips
66
2,845
152,634
Valero
Energy
Corp.
3,950
179,172
1,152,044
Pharmaceuticals
(
3.0%
)
Eli
Lilly
&
Co.
1,494
207,248
Johnson
&
Johnson
2,315
303,566
Schedule
of
Investments
March
31,
2020
CornerCap
Large/Mid-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
34
www.cornercapfunds.com
Shares
Fair
Value
Pharmaceuticals
(3.0%)
(continued)
Merck
&
Co.,
Inc.
3,475
$
267,366
778,180
Private
Equity
(
0.9%
)
KKR
&
Co.,
Inc.,
Class A
9,505
223,082
Real
Estate
Investment
Trusts
(
5.1%
)
Boston
Properties,
Inc.
REIT
1,310
120,821
CubeSmart
REIT
4,599
123,207
Duke
Realty
Corp.
REIT
3,821
123,724
Equity
Residential
REIT
2,105
129,900
Essex
Property
Trust,
Inc.
REIT
451
99,328
Host
Hotels
&
Resorts,
Inc.
REIT
9,385
103,610
Kilroy
Realty
Corp.
REIT
1,718
109,437
Mid-America
Apartment
Communities,
Inc.
REIT
894
92,109
National
Retail
Properties,
Inc.
REIT
3,085
99,306
Omega
Healthcare
Investors,
Inc.
REIT
3,774
100,162
PS
Business
Parks,
Inc.
REIT
1,000
135,520
STORE
Capital
Corp.
REIT
3,876
70,233
1,307,357
Retail
(
9.5%
)
Altria
Group,
Inc.
6,396
247,333
Best
Buy
Co.,
Inc.
4,030
229,710
Booking
Holdings,
Inc.
(a)
175
235,431
Cigna
Corp.
1,560
276,401
CVS
Health
Corp.
4,730
280,631
Dollar
Tree,
Inc.
(a)
2,536
186,320
eBay,
Inc.
8,325
250,249
IAC/InterActiveCorp.
(a)
1,351
242,140
Philip
Morris
International,
Inc.
3,535
257,914
Target
Corp.
2,355
218,944
2,425,073
Semiconductors
(
3.7%
)
Applied
Materials,
Inc.
4,421
202,570
Fortive
Corp.
4,228
233,344
Intel
Corp.
5,275
285,483
Skyworks
Solutions,
Inc.
2,453
219,249
940,646
Software
(
4.7%
)
Electronic
Arts,
Inc.
(a)
2,239
224,281
GoDaddy
,
Inc.,
Series A
A
(a)
4,640
264,990
Oracle
Corp.
5,240
253,249
SS&C
Technologies
Holdings,
Inc.
5,795
253,937
Schedule
of
Investments
March
31,
2020
CornerCap
Large/Mid-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
35
Annual
Report
I
March
31,
2020
Shares
Fair
Value
Software
(4.7%)
(continued)
Take-Two
Interactive
Software,
Inc.
(a)
1,775
$
210,533
1,206,990
Telecommunications
(
3.3%
)
AT&T,
Inc.
6,130
178,689
Comcast
Corp.,
Class A
6,455
221,923
DISH
Network
Corp.,
Class A
(a)
9,430
188,506
Facebook,
Inc.,
Class A
(a)
1,590
265,212
854,330
Transportation
(
2.5%
)
CSX
Corp.
4,455
255,27
3
Cummins,
Inc.
1,690
228,691
Delta
Air
Lines,
Inc.
5,455
155,631
639,59
5
TOTAL
COMMON
STOCK
(COST
$30,615,043)
24,769,59
9
Shares
Fair
Value
SHORT-TERM
INVESTMENTS
(
1.5%
)
Federated
Treasury
Obligations
Money
Market
Fund,
Institutional
Shares,
0.31%
(b)
394,054
394,054
TOTAL
SHORT-TERM
INVESTMENTS
(COST
$394,054)
394,054
INVESTMENTS,
AT
VALUE
(COST
$31,009,097)
98.5%
25,163,65
3
TOTAL
ASSETS
IN
EXCESS
OF
OTHER
LIABILITIES
1.5%
370,471
NET
ASSETS
100.0%
$
25,534,12
4
(a)
Non-income
producing
security.
(b)
Dividend
yield
changes
daily
to
reflect
current
market
conditions.
Rate
was
the
quoted
yield
as
of
March
31,
2020.
Common
Abbreviations:
PLC
Public
Limited
Company
REIT
Real
Estate
Investment
Trust
Statements
of
Assets
and
Liabilities
March
31,
2020
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
36
www.cornercapfunds.com
CornerCap
Balanced
Fund
CornerCap
Small-
Cap
Value
Fund
CornerCap
Large/
Mid-Cap
Value
Fund
ASSETS:
Investments,
at
value
(Cost
$28,956,089,
$111,941,376
and
$31,009,097,
respectively)
$
26,067,613
$
83,989,549
$
25,163,653
Cash
–
1,728,577
–
Receivable
for
fund
shares
subscribed
309
1,547,076
50,112
Receivable
for
investments
sold
586,890
1,313,853
1,129,329
Dividends
and
interest
receivable
114,780
147,909
64,527
Total
assets
26,769,592
88,726,964
26,407,621
LIABILITIES:
Payable
for
investment
securities
purchased
552,926
278,785
838,668
Payable
for
fund
shares
redeemed
47,337
21,956
20,429
Advisory
fee
payable
9,788
40,073
5,272
Other
expenses
6,887
23,831
9,128
Total
liabilities
616,938
364,645
873,497
Net
assets
$
26,152,654
$
88,362,319
$
25,534,12
4
PRICING
OF
INVESTOR
SHARES
(NOTE
2
):
Net
Assets
26,152,654
60,471,899
25,534,124
Shares
Outstanding
2,228,566
6,252,538
2,689,492
Net
asset
value,
offering
and
redemption
price
per
share
$
11.74
$
9.67
$
9.49
PRICING
OF
INSTITUTIONAL
SHARES
(NOTE
2
):
Net
Assets
$
–
$
27,890,420
$
–
Shares
Outstanding
–
2,877,224
–
Net
asset
value,
offering
and
redemption
price
per
share
$
–
$
9.69
$
–
NET
ASSETS
CONSISTS
OF:
Paid-in
capital
$
28,936,596
$
122,203,773
$
31,394,730
Distributable
earnings
(2,783,942)
(33,841,454)
(5,860,606)
Net
assets
$
26,152,654
$
88,362,319
$
25,534,124
Statements
of
Operations
For
the
Year
Ended
March
31,
2020
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
37
Annual
Report
I
March
31,
2020
CornerCap
Balanced
Fund
CornerCap
Small-Cap
Value
Fund
CornerCap
Large/Mid-Cap
Value
Fund
INVESTMENT
INCOME:
Dividends,
(net
of
foreign
withholding
taxes
of
$182,
$1,592
and
$316)
$
537,825
$
2,450,630
$
894,120
Interest
357,577
–
–
Total
investment
income
895,402
2,450,630
894,120
EXPENSES:
Advisory
fees
289,699
1,081,783
313,509
Operating
expenses
Investor
Shares
96,566
3
43,089
139,337
Institutional
Shares
–
34,426
–
Total
expenses
386,265
1,459,298
452,846
Less
fees
waived/reimbursed
by
investment
adviser
(64,378)
–
(104,503)
Net
expenses
321,887
1,459,298
348,343
Net
investment
income
573,515
991,332
545,777
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
ON
INVESTMENTS:
Net
realized
gain
(loss)
on
investments
391,465
(1,420,985)
1,040,664
Net
change
in
unrealized
depreciation
on
investments
(3,875,498)
(28,956,168)
(7,005,899)
Net
loss
on
investments
(3,484,033)
(30,377,153)
(5,965,235)
Net
decrease
in
net
assets
resulting
from
operations
$
(2,910,518)
$
(29,385,821)
$
(5,419,458)
Statements
of
Changes
in
Net
Assets
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
38
www.cornercapfunds.com
CornerCap
Balanced
Fund
CornerCap
Small-Cap
Value
Fund
CornerCap
Large/Mid-Cap
Value
Fund
For
the
Year
Ended
March
31,
2020
For
the
Year
Ended
March
31,
2019
For
the
Year
Ended
March
31,
2020
For
the
Year
Ended
March
31,
2019
For
the
Year
Ended
March
31,
2020
For
the
Year
Ended
March
31,
2019
OPERATIONS:
Net
investment
income
$
573,515
$
591,993
$
991,332
$
800,440
$
545,777
$
503,057
Net
realized
gain
(loss)
on
investments
391,465
860,933
(1,420,985)
3,852,366
1,040,664
1,047,370
Net
change
in
unrealized
appreciation
(depreciation)
of
investments
(3,875,498)
(918,381)
(28,956,168)
(6,482,167)
(7,005,899)
(1,421,457)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
(2,910,518)
534,545
(29,385,821)
(1,829,361)
(5,419,458)
128,970
DISTRIBUTIONS
TO
SHAREHOLDERS:
Investor
Shares
(1,625,892)
(1,782,575)
(478,081)
(9,987,827)
(2,160,520)
(2,069,311)
Institutional
Shares
–
–
(286,781)
(3,929,405)
–
–
Total
distributions
(1,625,892)
(1,782,575)
(764,862)
(13,917,232)
(2,160,520)
(2,069,311)
CAPITAL
SHARE
TRANSACTIONS:
Net
increase
(decrease)
from
capital
share
transactions
(see
Note
3
)
(4,178,106)
(1,615,201)
(881,760)
12,558,930
(2,793,508)
6,300,504
Redemption
fees
61
139
3,936
1,544
429
373
Net
increase
(decrease)
from
capital
share
transactions
(4,178,045)
(1,615,062)
(877,824)
12,560,474
(2,793,079)
6,300,877
Total
increase
(decrease)
in
net
assets
(8,714,455)
(2,863,092)
(31,028,507)
(3,186,119)
(10,373,057)
4,360,536
NET
ASSETS:
Beginning
of
year
34,867,109
37,730,201
119,390,826
122,576,945
35,907,181
31,546,645
End
of
year
$
26,152,654
$
34,867,109
$
88,362,319
$
119,390,826
$
25,534,124
$
35,907,181
Financial
Highlights
CornerCap
Balanced
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
39
Annual
Report
I
March
31,
2020
Selected
data
for
each
share
of
beneficial
interest
outstanding
throughout
the
years
indicated:
Year
Ended
March
31,
2020
Year
Ended
March
31,
2019
Year
Ended
March
31,
2018
Year
Ended
March
31,
2017
Year
Ended
March
31,
2016
PER
SHARE
OPERATING
PERFORMANCE
Net
asset
value,
beginning
of
year
$
13.76
$
14.32
$
14.08
$
12.70
$
14.62
INCOME/(LOSS)
FROM
INVESTMENT
OPERATIONS:
Net
investment
income
(a)
0.25
0.23
0.20
0.20
0.22
Net
realized
and
unrealized
gain
(loss)
on
investments
(1.52)
(0.06)
0.82
1.38
(0.75)
Total
Income/(Loss)
from
Investment
Operations
(1.27)
0.17
1.02
1.58
(0.53)
DIVIDENDS
AND
DISTRIBUTIONS
TO
SHAREHOLDERS:
Distributions
from
net
investment
income
(0.26)
(0.23)
(0.18)
(0.20)
(0.09)
Distributions
from
net
realized
gain
on
investments
(0.49)
(0.50)
(0.60)
–
(1.30)
Total
Dividends
and
Distributions
to
Shareholders
(0.75)
(0.73)
(0.78)
(0.20)
(1.39)
Paid-in
Capital
from
Redemption
Fees
(a)
0.00
(b)
0.00
(b)
0.00
0.00
(b)
0.00
Net
asset
value,
end
of
year
$
11.74
$
13.76
$
14.32
$
14.08
$
12.70
Total
Return
(10.14)%
1.54%
7.16%
12.46%
(3.32)%
RATIOS
AND
SUPPLEMENTAL
DATA:
Net
assets,
end
of
year
(in
000s)
$
26,153
$
34,867
$
37,730
$
30,592
$
25,615
RATIOS
TO
AVERAGE
NET
ASSETS:
Net
investment
income
1.79%
1.66%
1.38%
1.53%
1.61%
Net
expenses
1.00%
1.00%
1.00%
1.00%
1.10%
Gross
expenses
(c)
1.20%
1.20%
1.20%
1.20%
1.27%
Portfolio
turnover
rate
62%
53%
64%
60%
70%
footer
(a)
Calculated
based
on
average
shares
outstanding
during
each
year.
(b)
Less
than
$0.005
per
share.
(c)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
Financial
Highlights
CornerCap
Small-Cap
Value
Fund
-
Investor
Shares
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
40
www.cornercapfunds.com
Selected
data
for
each
share
of
beneficial
interest
outstanding
throughout
the
years
indicated:
Year
Ended
March
31,
2020
Year
Ended
March
31,
2019
Year
Ended
March
31,
2018
Year
Ended
March
31,
2017
Year
Ended
March
31,
2016
INVESTOR
SHARES
PER
SHARE
OPERATING
PERFORMANCE
Net
asset
value,
beginning
of
year
$
13.12
$
15.27
$
16.68
$
14.00
$
15.55
INCOME/(LOSS)
FROM
INVESTMENT
OPERATIONS:
Net
investment
income
(a)
0.10
0.08
0.06
0.04
0.05
Net
realized
and
unrealized
gain
(loss)
on
investments
(3.47)
(0.38)
0.90
3.38
(0.60)
Total
Income/(Loss)
from
Investment
Operations
(3.37)
(0.30)
0.96
3.42
(0.55)
DIVIDENDS
AND
DISTRIBUTIONS
TO
SHAREHOLDERS:
Distributions
from
net
investment
income
(0.08)
(0.04)
(0.01)
(0.03)
(0.04)
Distributions
from
net
realized
gain
on
investments
–
(1.81)
(2.36)
(0.71)
(0.96)
Total
Dividends
and
Distributions
to
Shareholders
(0.08)
(1.85)
(2.37)
(0.74)
(1.00)
Paid-in
Capital
from
Redemption
Fees
(a)
0.00
(b)
0.00
(b)
0.00
(b)
0.00
(b)
0.00
(b)
Net
asset
value,
end
of
year
$
9.67
$
13.12
$
15.27
$
16.68
$
14.00
Total
Return
(25.91)%
(0.99)%
5.64%
24.40%
(3.29)%
RATIOS
AND
SUPPLEMENTAL
DATA:
Net
assets,
end
of
year
(in
000s)
$
60,472
$
85,230
$
84,789
$
77,455
$
76,053
RATIOS
TO
AVERAGE
NET
ASSETS:
Net
investment
income
0.74%
0.55%
0.36%
0.26%
0.38%
Net
expenses
1.30%
1.30%
1.30%
1.30%
1.30%
Gross
expenses
1.30%
1.30%
1.30%
1.30%
1.45%
(c)
Portfolio
turnover
rate
127%
147%
117%
129%
144%
footer
(a)
Calculated
based
on
average
shares
outstanding
during
each
year.
(b)
Less
than
$0.005
per
share.
(c)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
Financial
Highlights
CornerCap
Small-Cap
Value
Fund
-
Institutional
Shares
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
41
Annual
Report
I
March
31,
2020
Selected
data
for
each
share
of
beneficial
interest
outstanding
throughout
the
periods
indicated:
Year
Ended
March
31,
2020
Year
Ended
March
31,
2019
Year
Ended
March
31,
2018
Year
Ended
March
31,
2017
December
29,
2015(a)
Through
March
31,
2016
INSTITUTIONAL
SHARES
PER
SHARE
OPERATING
PERFORMANCE
Net
asset
value,
beginning
of
period
$
13.15
$
15.30
$
16.70
$
14.02
$
14.03
INCOME/(LOSS)
FROM
INVESTMENT
OPERATIONS:
Net
investment
income
(b)
0.14
0.13
0.11
0.09
0.04
Net
realized
and
unrealized
gain
(loss)
on
investments
(3.48)
(0.39)
0.91
3.38
(0.05)
Total
Income/(Loss)
from
Investment
Operations
(3.34)
(0.26)
1.02
3.47
(0.01)
DIVIDENDS
AND
DISTRIBUTIONS
TO
SHAREHOLDERS:
Distributions
from
net
investment
income
(0.12)
(0.08)
(0.06)
(0.08)
–
Distributions
from
net
realized
gain
on
investments
–
(1.81)
(2.36)
(0.71)
–
Total
Dividends
and
Distributions
to
Shareholders
(0.12)
(1.89)
(2.42)
(0.79)
–
Paid-in
Capital
from
Redemption
Fees
(b)
0.00
(c)
0.00
(c)
0.00
(c)
0.00
(c)
0.00
Net
asset
value,
end
of
period
$
9.69
$
13.15
$
15.30
$
16.70
$
14.02
Total
Return
(25.72)%
(0.68)%
5.96%
24.74%
(0.07)%
(d)
RATIOS
AND
SUPPLEMENTAL
DATA:
Net
assets,
end
of
period
(in
000s)
$
27,890
$
34,161
$
37,788
$
28,523
$
21,049
RATIOS
TO
AVERAGE
NET
ASSETS:
Net
investment
income
1.05%
0.84%
0.67%
0.57%
1.33%
(e)
Net
expenses
1.00%
1.00%
1.00%
1.00%
1.00%
(e)
Gross
expenses
1.00%
1.00%
1.00%
1.00%
1.00%
(e)
Portfolio
turnover
rate
127%
147%
117%
129%
144%
(d)
footer
(a)
Commencement
of
operations.
(b)
Calculated
based
on
average
shares
outstanding
during
each
period.
(c)
Less
than
$0.005
per
share.
(d)
Not
annualized.
(e)
Annualized.
Financial
Highlights
CornerCap
Large/Mid-Cap
Value
Fund
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
42
www.cornercapfunds.com
Selected
data
for
each
share
of
beneficial
interest
outstanding
throughout
the
years
indicated:
Year
Ended
March
31,
2020
Year
Ended
March
31,
2019
Year
Ended
March
31,
2018
Year
Ended
March
31,
2017
Year
Ended
March
31,
2016
PER
SHARE
OPERATING
PERFORMANCE
Net
asset
value,
beginning
of
year
$
12.30
$
13.10
$
12.56
$
10.80
$
13.75
INCOME/(LOSS)
FROM
INVESTMENT
OPERATIONS:
Net
investment
income
(a)
0.20
0.19
0.13
0.13
0.13
Net
realized
and
unrealized
gain
(loss)
on
investments
(2.20)
(0.21)
1.39
1.73
(1.07)
Total
Income/(Loss)
from
Investment
Operations
(2.00)
(0.02)
1.52
1.86
(0.94)
DIVIDENDS
AND
DISTRIBUTIONS
TO
SHAREHOLDERS:
Distributions
from
net
investment
income
(0.20)
(0.15)
(0.10)
(0.10)
(0.11)
Distributions
from
net
realized
gain
on
investments
(0.61)
(0.63)
(0.88)
–
(1.90)
Total
Dividends
and
Distributions
to
Shareholders
(0.81)
(0.78)
(0.98)
(0.10)
(2.01)
Paid-in
Capital
from
Redemption
Fees
(a)
0.00
(b)
0.00
(b)
0.00
(b)
0.00
(b)
0.00
(b)
Net
asset
value,
end
of
year
$
9.49
$
12.30
$
13.10
$
12.56
$
10.80
Total
Return
(17.97)%
0.32%
12.04%
17.31%
(6.29)%
RATIOS
AND
SUPPLEMENTAL
DATA:
Net
assets,
end
of
year
(in
000s)
$
25,534
$
35,907
$
31,547
$
25,071
$
13,170
RATIOS
TO
AVERAGE
NET
ASSETS:
Net
investment
income
1.57%
1.45%
1.02%
1.14%
1.07%
Net
expenses
1.00%
1.00%
1.00%
1.00%
1.20%
Gross
expenses
(c)
1.30%
1.30%
1.30%
1.30%
1.44%
Portfolio
turnover
rate
92%
81%
89%
82%
97%
footer
(a)
Calculated
based
on
average
shares
outstanding
during
each
year.
(b)
Less
than
$0.005
per
share.
(c)
Reflects
the
expense
ratio
excluding
any
waivers
and/or
reimbursements.
Notes
to
Financial
Statements
March
31,
2020
Annual
Report
I
March
31,
2020
43
1.
ORGANIZATION
The
CornerCap
Group
of
Funds
was
organized
on
January
6,
1986
as
a
Massachusetts
Business
Trust
(the
“Trust”)
and
is
registered
under
the
Investment
Company
Act
of
1940
as
a
diversified
open-end
management
investment
company.
The
Trust
currently
consists
of
the
following
three
series
(each,
a
“Fund”
and,
together,
the
“Funds”):
CornerCap
Balanced
Fund,
CornerCap
Large/Mid-Cap
Value
Fund
and
CornerCap
Small-Cap
Value
Fund.
CornerCap
Balanced
Fund
and
CornerCap
Large/Mid-Cap
Value
Fund
currently
offer
Investor
Shares
and
CornerCap
Small-Cap
Value
Fund
currently
offers
Investor
Shares
and
Institutional
Shares.
The
investment
objective
of
the
CornerCap
Balanced
Fund
is
long-term
capital
appreciation
and
current
income.
The
CornerCap
Small‐Cap
Value
Fund’s
investment
objective
is
long-term
capital
appreciation
with
a
secondary
objective
of
generating
income
from
dividends
or
interest
on
securities.
The
CornerCap
Large/Mid‐Cap
Value
Fund’s
investment
objective
is
long-term
capital
appreciation.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
Funds
are
investment
companies
and
follow
accounting
and
reporting
guidance
under
Financial
Accounting
Standards
Board
(“FASB”)
Accounting
Standards
Codification
(“ASC”)
Topic
946,
“Financial
Services
–
Investment
Companies”.
The
following
is
a
summary
of
significant
accounting
policies
consistently
followed
by
the
Funds.
These
policies
are
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“GAAP”).
Accounting
Estimates
–
In
preparing
financial
statements
in
conformity
with
GAAP,
management
makes
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
for
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements,
as
well
as
the
reported
amounts
of
revenues
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
Security
Valuation
–
Portfolio
securities
including
common
stocks,
corporate
bonds,
municipal
bonds,
exchange
traded
funds
(ETFs),
and
U.S.
Government
and
Agency
obligations
that
are
listed
on
national
securities
exchanges
or
the
NASDAQ
National
Market
System
are
valued
at
the
last
sale
price
or
official
close
as
of
4:00
p.m.
Eastern
time
or,
in
the
absence
of
recorded
sales,
at
the
closing
bid
price
on
such
exchanges
or
such
system.
Based
on
obtaining
active
market
quotes,
common
stocks
and
exchange
traded
funds
are
classified
as
Level
1
of
the
fair
value
hierarchy.
Corporate
bonds,
municipal
bonds,
certificates
of
deposit
and
U.S.
Government
and
Agency
obligations
are
classified
as
Level
2
of
the
fair
value
hierarchy,
and
are
priced
based
upon
valuations
provided
by
a
recognized
independent,
third
party
pricing
agent.
Third‐
party
pricing
agents
value
these
securities
by
employing
methodologies
that
utilize
actual
market
transactions,
broker‐
supplied
valuations,
or
other
methodologies
designed
to
identify
the
market
value
for
such
securities.
Such
methodologies
generally
consider
such
factors
as
security
prices,
yields,
maturities,
call
features,
ratings,
and
developments
relating
to
specific
securities
in
arriving
at
valuations.
Unlisted
securities
that
are
not
included
on
such
exchanges
or
systems
are
valued
at
the
quoted
bid
prices
on
the
over‐the
counter
market.
Shares
of
a
registered
investment
company,
including
money
market
funds,
that
are
not
traded
on
an
exchange
are
valued
at
that
investment
company’s
net
asset
value
per
share
and
are
classified
as
Level
1
within
the
fair
value
hierarchy.
Securities
and
other
assets
for
which
market
quotations
are
not
readily
available
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Adviser
under
procedures
established
Notes
to
Financial
Statements
March
31,
2020
44
www.cornercapfunds.com
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
using
the
effective
interest
method.
In
the
event
of
a
security
in
default,
a
portion
of
interest
receivable
that
was
once
recognized
as
interest
income
is
written
off
and
treated
as
a
reduction
of
interest
income.
REITs
–
Each
Fund
has
made
certain
investments
in
real
estate
investment
trusts
(“REITs”)
which
pay
dividends
to
their
shareholders
based
upon
funds
available
from
operations.
It
is
quite
common
for
these
dividends
to
exceed
the
REIT’s
taxable
earnings
and
profits
resulting
in
the
excess
portion
of
such
dividends
being
designated
as
a
return
of
capital.
Each
Fund
may
include
the
gross
dividends
from
such
REITs
in
income
or
may
utilize
estimates
of
any
potential
REIT
dividend
reclassifications
in
each
Fund’s
annual
distributions
to
shareholders
and,
accordingly,
a
portion
of
each
Fund’s
distributions
may
be
designated
as
a
return
of
capital,
require
reclassification,
or
be
under
distributed
on
an
excise
basis
and
subject
to
excise
tax.
Any
reclassifications
are
treated
as
permanent
book
to
tax
differences
and
are
reclassified
within
the
components
of
net
assets
on
the
Statement
of
Assets
and
Liabilities,
rather
than
reclassifying
such
amounts
on
the
Statements
of
Operations.
Federal
Income
Taxes
–
For
Federal
income
tax
purposes,
the
Funds
currently
qualify,
and
intend
to
remain
qualified,
as
regulated
investment
companies
(“RICs”)
under
the
provisions
of
Subchapter
M
of
the
Internal
Revenue
Code
of
1986
(“Code”),
as
amended,
by
complying
with
the
requirements
applicable
to
RICs
and
by
distributing
their
investment
company
taxable
net
income
including
any
excess
realized
gain
which
has
not
been
offset
by
capital
loss
carryforwards,
if
any,
to
their
shareholders.
Accordingly,
no
provision
for
federal
income
or
excise
taxes
has
been
made.
As
of
and
during
the
year
ended
March
31,
2020,
the
Funds
did
not
have
a
liability
for
any
unrecognized
tax
benefits.
The
Funds
file
U.S.
federal,
state,
and
local
tax
returns
as
required.
The
Funds’
tax
returns
are
subject
to
examination
by
the
relevant
tax
authorities
until
expiration
of
the
applicable
statute
of
limitations,
which
is
generally
three
years
after
the
filing
of
the
tax
return
but
which
can
be
extended
to
six
years
in
certain
circumstances.
The
Funds
recognize
interest
and
penalties,
if
any,
related
to
unrecognized
tax
benefits
as
income
tax
expense
in
the
Statements
of
Operations.
During
the
year,
the
Funds
did
not
incur
any
interest
or
penalties.
Distributions
to
Shareholders
–
Distributions
from
net
investment
income
and
distributions
of
net
realized
capital
gains,
if
any,
will
be
declared
and
paid
at
least
annually.
Income
and
capital
gains
distributions
are
determined
in
accordance
with
income
tax
regulations,
which
may
differ
from
GAAP.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Income
and
Expense
Allocation
–
The
Trust
accounts
separately
for
the
assets,
liabilities
and
operations
of
each
Fund.
Expenses
that
are
directly
attributable
to
more
than
one
investment
portfolio
are
allocated
among
the
respective
Funds
in
an
equitable
manner.
Notes
to
Financial
Statements
March
31,
2020
Annual
Report
I
March
31,
2020
45
CornerCap
Small-Cap
Value
Fund’s
class
specific
expenses
are
charged
to
the
operations
of
that
class
of
shares.
Income
and
expenses
(other
than
expenses
attributable
to
a
specific
class)
and
realized
and
unrealized
gains
or
losses
on
investments
are
allocated
to
each
class
of
shares
based
on
the
class’
respective
net
assets
to
the
total
net
assets
of
the
Fund.
Fair
Value
Measurements
–
A
three-tier
hierarchy
has
been
established
to
classify
fair
value
measurements
for
disclosure
purposes.
Inputs
refer
broadly
to
the
assumptions
that
market
participants
would
use
in
pricing
the
asset
or
liability,
including
assumptions
about
risk.
Inputs
may
be
observable
or
unobservable.
Observable
inputs
reflect
the
assumptions
market
participants
would
use
in
pricing
the
asset
or
liability
that
are
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity.
Unobservable
inputs
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
participants
would
use
in
pricing
the
asset
or
liability
that
are
developed
based
on
the
best
information
available.
Various
inputs
are
used
in
determining
the
value
of
each
Fund’s
investments
as
of
the
reporting
period
end.
When
inputs
used
fall
into
different
levels
of
the
fair
value
hierarchy,
the
level
in
the
hierarchy
within
which
the
fair
value
measurement
falls
in
its
entirety,
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety.
The
designated
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
these
investments.
These
inputs
are
categorized
in
the
following
hierarchy
under
applicable
financial
accounting
standards:
Level
1
–
Unadjusted
quoted
prices
in
active
markets
for
identical
investments,
unrestricted
assets
or
liabilities
that
a
Fund
has
the
ability
to
access
at
the
measurement
date;
Level
2
–
Quoted
prices
which
are
not
active,
quoted
prices
for
similar
assets
or
liabilities
in
active
markets
or
inputs
other
than
quoted
prices
that
are
observable
(either
directly
or
indirectly)
for
substantially
the
full
term
of
the
asset
or
liability;
and
Level
3
–
Significant
unobservable
prices
or
inputs
(including
each
Fund’s
own
assumptions
in
determining
the
fair
value
of
investments)
where
there
is
little
or
no
market
activity
for
the
asset
or
liability
at
the
measurement
date.
The
following
is
a
summary
of
investments
based
on
the
inputs
used
to
value
the
Funds’
investments
as
of
March
31,
2020:
Notes
to
Financial
Statements
March
31,
2020
46
www.cornercapfunds.com
For
the
year
ended
March
31,
2020
,
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,
2020
,
there
was
an
unlimited
number
of
no
par-value
shares
of
beneficial
interest
authorized
for
each
Fund.
Subject
to
certain
exceptions,
each
Fund
charges
a
1%
redemption
fee,
calculated
as
a
percentage
of
the
amount
redeemed,
on
redemptions
(sales
or
exchanges)
made
within
sixty
days
of
initial
purchase
of
shares
of
the
applicable
Fund.
The
redemption
fees
charged
during
the
period
are
disclosed
on
the
Statements
of
Changes
in
Net
Assets.
Transactions
in
shares
of
beneficial
interest
were
as
follows:
CornerCap
Balanced
Fund:
Valuation
Inputs
Investments
at
Value
*
Level
1
Level
2
Level
3
Total
Common
Stocks
$
14,301,874
$
–
$
–
$
14,301,874
Exchange
Traded
Funds
1,343,684
–
–
1,343,684
Government
Bond
–
1,276,542
–
1,276,542
Corporate
Non-Convertible
Bonds
–
8,393,359
–
8,393,359
Short-Term
Investments
752,154
–
–
752,154
Total
$
16,397,712
$
9,669,901
$
–
$
26,067,613
CornerCap
Small-Cap
Value
Fund:
Valuation
Inputs
Investments
at
Value
*
Level
1
Level
2
Level
3
Total
Common
Stocks
$
83,989,549
$
–
$
–
$
83,989,549
Total
$
83,989,549
$
–
$
–
$
83,989,549
CornerCap
Large/Mid-Cap
Value
Fund:
Valuation
Inputs
Investments
at
Value
*
Level
1
Level
2
Level
3
Total
Common
Stocks
$
24,769,599
$
–
$
–
$
24,769,599
Short-Term
Investments
394,054
–
–
394,054
Total
$
2
5,163,653
$
–
$
–
$
25,163,653
*
See
Schedule
of
Investments
for
industry
classification
Notes
to
Financial
Statements
March
31,
2020
Annual
Report
I
March
31,
2020
47
4.
FEDERAL
TAX
INFORMATION
The
character
of
distributions
made
during
the
year
from
net
investment
income
or
net
realized
gains
may
differ
from
its
ultimate
characterization
for
federal
income
tax
purposes.
Also,
due
to
the
timing
of
dividend
distributions,
the
fiscal
year
in
which
amounts
are
distributed
may
differ
from
the
fiscal
year
in
which
the
income
or
realized
gain
was
recorded
by
the
Funds.
Distributions
from
net
investment
income
and
distributions
of
net
realized
capital
gains,
if
any,
will
be
declared
and
paid
at
least
annually.
The
tax
character
of
distributions
paid
for
the
years
ended
March
31,
2020
and
March
31,
2019
were
as
follows:
CornerCap
Balanced
Fund:
Year
Ended
March
31,
2020
Year
Ended
March
31,
2019
Shares
Amount
Shares
Amount
Shares
Sold
116,206
$
1,602,142
346,875
$
4,839,377
Shares
Issued
in
Reinvestment
of
Dividends
113,784
1,625,291
137,076
1,781,994
Total
229,990
3,227,433
483,951
6,621,371
Less
Shares
Redeemed
(534,861)
(7,405,539)
(584,672)
(8,236,572)
Net
decrease
(304,871)
$
(4,178,106)
(100,721)
$
(1,615,201)
CornerCap
Small-Cap
Value
Fund:
Year
Ended
March
31,
2020
Year
Ended
March
31,
2019
Shares
Amount
Shares
Amount
Shares
Sold
Investor
Shares
924,996
11,825,875
1,281,384
18,341,239
Institutional
Shares
766,322
8,927,442
447,531
6,373,047
Shares
Issued
in
Reinvestment
of
Dividends
Investor
Shares
32,788
478,045
818,646
9,987,009
Institutional
Shares
18,955
276,746
307,887
3,767,781
Total
1,743,061
21,508,108
2,855,448
38,469,076
Less
Shares
Redeemed
Investor
Shares
(1,199,978)
(16,045,580)
(1,156,704)
(16,665,251)
Institutional
Shares
(506,070)
(6,344,288)
(626,822)
(9,244,895)
Net
increase
(decrease)
37,013
$
(881,760)
1,071,922
$
12,558,930
CornerCap
Large/Mid-Cap
Value
Fund:
Year
Ended
March
31,
2020
Year
Ended
March
31,
2019
Shares
Amount
Shares
Amount
Shares
Sold
358,636
$
4,191,368
826,236
$
10,593,881
Shares
Issued
in
Reinvestment
of
Dividends
166,196
2,160,520
181,685
2,069,311
Total
524,832
6,351,888
1,007,921
12,663,192
Less
Shares
Redeemed
(754,429)
(9,145,396)
(496,523)
(6,362,688)
Net
increase
(decrease)
(229,597)
$
(2,793,508)
511,398
$
6,300,504
Notes
to
Financial
Statements
March
31,
2020
48
www.cornercapfunds.com
Equalization
debits
not
included
in
the
distribution
for
the
CornerCap
Small-Cap
Value
Fund
were
as
follows:
For
the
year
ended
March
31,
2020
,
each
Fund
recorded
the
following
reclassifications
to
the
accounts
listed
below.
The
reclassifications
were
primarily
as
a
result
of
distribution
in
excess
of
earnings.
As
of
March
31,
2020
,
the
components
of
distributable
earnings
on
a
tax
basis
were
as
follows:
The
difference
between
components
of
distributable
earnings
on
a
tax
basis
and
the
amounts
reflected
in
the
Statement
of
Assets
and
Liabilities
are
primarily
due
to
wash
sales,
partnerships,
real
estate
investment
trust
investments
and
return
of
capital
on
equity
securities.
CornerCap
Balanced
Fund
Distributions
Paid
From:
2020
2019
Ordinary
Income
$
905,549
$
8
50,014
Long-term
capital
gains
720,343
932,561
Total
$
1,625,892
$
1,782,575
CornerCap
Small-Cap
Value
Fund
Distributions
Paid
From:
2020
2019
Ordinary
Income
$
764,862
$
5,822,961
Long-term
capital
gains
–
8
,094,271
Total
$
764,862
$
13,917,232
CornerCap
Large/Mid-Cap
Value
Fund
Distributions
Paid
From:
2020
2019
Ordinary
Income
$
1,102,197
$
1,056,093
Long-term
capital
gains
1,058,323
1,013,218
Total
$
2,160,520
$
2,069,311
Ordinary
Income
Long-Term
Capital
Gain
Total
2019
$
–
$
195,240
$
195,240
Distributable
Earnings
Paid-in-Capital
CornerCap
Small-Cap
Value
Fund
$
76,938
$
(76,938)
CornerCap
Balanced
Fund
CornerCap
Small-Cap
Value
Fund
CornerCap
Large/Mid-Cap
Value
Fund
Undistributed
ordinary
income
$
356,039
$
–
$
118,444
Capital
and
other
losses
(272,183)
(6,054,340)
(109,213)
Net
unrealized
depreciation
on
investments
(2,867,798)
(27,787,114)
(5,869,837)
Total
$
(2,783,942)
$
(33,841,454)
$
(5,860,606)
Notes
to
Financial
Statements
March
31,
2020
Annual
Report
I
March
31,
2020
49
As
of
March
31,
2020
,
CornerCapSmall-Cap
Value
Fund
had
$6,054,340
in
short-term
capital
loss
carryforwards
to
reduce
the
Fund’s
taxable
income
arising
from
future
net
realized
gains
on
investments.
The
capital
loss
carryforwards
have
no
expiration
date.
For
tax
purposes,
the
current
year
post-October
loss
deferrals
were
$272,183
and
$109,213
(realized
during
the
period
November
1,
2019
through
March
31,
2020)
for
CornerCap
Balanced
Fund
and
CornerCap
Large/Mid-Cap
Value
Fund,
respectively.
These
losses
will
be
recognized
for
tax
purposes
on
the
first
business
day
of
the
Funds’
next
fiscal
year,
April
1,
2020.
The
amount
of
net
unrealized
appreciation
(depreciation)
and
the
cost
of
investment
securities
for
tax
purposes,
including
short-term
securities
as
of
March
31,
2020
,
were
as
follows:
5.
INVESTMENT
ADVISORY
AND
OTHER
RELATED
PARTY
TRANSACTIONS
A.
Each
of
the
Funds
has
an
Investment
Advisory
Agreement
with
CornerCap
Investment
Counsel
(the
“Adviser”),
pursuant
to
which
the
Adviser
receives
an
Advisory
Fee
from
the
Fund,
computed
daily
and
payable
monthly,
at
an
annual
rate
of
0.90%
of
the
Fund’s
average
daily
net
assets.
Under
the
terms
of
each
Advisory
Agreement,
the
Adviser
manages
the
Fund’s
investments
subject
to
the
approval
of
the
Board
of
Trustees.
The
amount
of
expenses
paid
to
the
Adviser
are
reflected
in
the
Statements
of
Operations
and
the
amount
of
current
liabilities
are
reflected
in
the
Statements
of
Assets
and
Liabilities.
In
addition,
each
Fund
and
the
Adviser
have
entered
into
an
Operating
Services
Agreement
whereby
the
Adviser
receives
an
Operating
Services
Fee,
computed
daily
and
payable
monthly,
at
an
annual
rate
of
0.30%,
0.40%,
0.10%
and
0.40%
of
the
average
daily
net
assets
of
the
CornerCap
Balanced
Fund,
CornerCap
Small‐Cap
Value
Fund
–
Investor
Shares,
CornerCap
Small-Cap
Value
Fund
–
Institutional
Shares
and
CornerCap
Large/Mid‐Cap
Value
Fund,
respectively.
The
amounts
of
expenses
paid
to
the
Adviser
as
Operating
Services
Fees
are
reflected
in
the
Statements
of
Operations
and
the
amount
of
current
liabilities
are
reflected
in
the
Statements
of
Assets
and
Liabilities.
The
Adviser
has
contractually
agreed
to
waive
fees
and
reimburse
each
of
the
Funds
so
as
to
limit
each
Fund’s
“Total
Annual
Fund
Operating
Expenses”
(exclusive
of
all
taxes,
interest,
brokerage
fees
and
commissions,
acquired
fund
fees
and
expenses,
and
extraordinary
expenses)
as
reflected
in
the
following
table:
CornerCap
Balanced
Fund
CornerCap
Small-Cap
Value
Fund
CornerCap
Large/Mid-Cap
Value
Fund
Gross
unrealized
appreciation
(excess
of
value
over
tax
cost)
$
956,833
$
2,510,953
$
1,041,150
Gross
unrealized
depreciation
(excess
of
tax
cost
over
value)
(3,824,631)
(30,298,067)
(6,910,987)
Net
unrealized
depreciation
$
(2,867,798)
$
(27,787,114)
$
(5,869,837)
Cost
of
investments
for
income
tax
purposes
$
28,935,411
$
111,776,663
$
31,033,490
Notes
to
Financial
Statements
March
31,
2020
50
www.cornercapfunds.com
The
contractual
agreements
cannot
be
terminated
prior
to
August
1,
2020,
without
the
Board
of
Trustees’
approval.
For
the
year
ended
March
31,
2020,
the
Adviser
waived
fees
and
reimbursed
expenses
for
the
CornerCap
Balanced
Fund
and
CornerCap
Large/Mid-Cap
Value
Fund
of
$64,378
and
$104,503,
respectively.
These
fees
are
not
subject
to
recoupment
by
the
Adviser.
B.
The
Funds
and
the
Adviser
have
entered
into
the
following
agreements
whereby
the
Adviser
pays
any
associated
fees
from
the
Operating
Services
Fees
it
receives
from
the
Funds
to
Fund
operational
service
providers
pursuant
to
the
following
agreements:
1)
Atlantic
Fund
Administration,
LLC,
a
wholly
owned
subsidiary
of
Apex
US
Holdings,
LLC
(d/b/a
Apex
Fund
Services)
(“Apex”)
provides
fund
accounting,
fund
administration
services
and
transfer
agency
services
to
each
Fund.
Pursuant
to
an
Apex
services
agreement,
the
Adviser
pays
Apex
customary
fees
for
its
services
from
the
Operating
Services
Fee
it
receives
from
the
Funds.
Apex
also
provides
certain
shareholder
report
production,
and
EDGAR
conversion
and
filing
services;
2)
Foreside
Fund
Services,
LLC
serves
as
each
Fund’s
distributor
(the
“Distributor”).
The
Distributor
is
not
affiliated
with
the
Adviser
or
Apex
or
their
affiliates.
In
addition,
the
Adviser
pays
all
other
operating
expenses
of
each
Fund,
as
outlined
in
the
Operating
Services
Agreement.
Certain
trustees
and
officers
of
the
Funds
are
also
directors
and
officers
of
the
Adviser.
6.
PURCHASES
AND
SALES
OF
SECURITIES
Investment
transactions
for
the
year
ended
March
31,
2020
,
excluding
U.S.
Government
and
Agency
securities
and
short-
term
investments,
were
as
follows:
Investment
transactions
in
U.S.
Government
and
Agency
securities
for
the
year
ended
March
31,
2020,
were
as
follows:
Fund
Total
Annual
Fund
Operating
Expense
Limitation
CornerCap
Balanced
Fund
1.00%
CornerCap
Small-Cap
Value
Fund
–
Investor
Shares
1.30%
CornerCap
Large/Mid-Cap
Value
Fund
1.00%
Purchases
Sales
CornerCap
Balanced
Fund
$
19,300,303
$
24,098,299
CornerCap
Small-Cap
Value
Fund
148,540,440
150,347,975
CornerCap
Large/Mid-Cap
Value
Fund
31,204,527
35,929,220
Notes
to
Financial
Statements
March
31,
2020
Annual
Report
I
March
31,
2020
51
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,
2020
,
Charles
Schwab
&
Co.
held
approximately
54.04%,
73.34%
and
70.13%
of
the
CornerCap
Balanced
Fund,
CornerCap
Small‐
Cap
Value
Fund,
and
CornerCap
Large/Mid‐Cap
Value
Fund,
respectively.
The
shares
are
held
under
omnibus
accounts
(whereby
the
transactions
of
two
or
more
shareholders
are
combined
and
carried
in
the
name
of
the
originating
broker
rather
than
designated
separately).
8.
INDEMNIFICATIONS
Under
the
Trust’s
organizational
documents,
its
officers
and
Trustees
are
indemnified
against
certain
liability
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust
enters
into
contracts
with
service
providers
that
may
contain
general
indemnification
clauses
which
may
permit
indemnification
to
the
extent
permissible
under
applicable
law.
The
Trust’s
maximum
exposure
under
these
arrangements
is
unknown,
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
9.
Recent
Accounting
Pronouncements
In
March
2017,
the
FASB
issued
ASU
No.
2017-08,
Receivables—Nonrefundable
Fees
and
Other
Costs
(Subtopic
310-20):
Premium
Amortization
on
Purchased
Callable
Debt
Securities.
The
amendments
in
the
ASU
shorten
the
amortization
period
for
certain
callable
debt
securities,
held
at
a
premium,
to
be
amortized
to
the
earliest
call
date.
The
ASU
does
not
require
an
accounting
change
for
securities
held
at
a
discount;
which
continues
to
be
amortized
to
maturity.
The
ASU
is
effective
for
fiscal
years
and
interim
periods
within
those
fiscal
years
beginning
after
December
15,
2018.
The
Funds
have
adopted
ASU
No.
2017-08
within
these
financial
statements.
10.
SUBSEQUENT
EVENTS
Management
is
currently
evaluating
the
recent
introduction
of
the
COVID-19
virus
and
its
impact
on
the
financial
services
industry
and
has
concluded
that
while
it
is
reasonably
possible
that
the
virus
could
have
a
negative
effect
on
the
fair
value
of
the
Funds’
investments
and
results
of
operations,
the
specific
impact
is
not
readily
determinable
as
of
the
date
of
these
financial
statements.
The
financial
statements
do
not
include
any
adjustments
that
might
result
from
the
outcome
of
this
uncertainty.
Purchases
Sales
CornerCap
Balanced
Fund
$
–
$
295,066
Report
of
Independent
Registered
Public
Accounting
Firm
52
www.cornercapfunds.com
To
the
Shareholders
and
Board
of
Trustees
of
CornerCap
Group
of
Funds
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statements
of
assets
and
liabilities,
including
the
schedules
of
investments,
of
CornerCap
Group
of
Funds,
comprising
CornerCap
Balanced
Fund,
CornerCap
Small-Cap
Value
Fund,
and
CornerCap
Large/
Mid-Cap
Value
Fund
(the
“Funds”),
as
of
March
31,
2020,
the
related
statements
of
operations
for
the
year
then
ended,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
periods
in
the
period
then
ended
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
each
of
the
Funds
as
of
March
31,
2020,
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
periods
in
the
period
then
ended,
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(“PCAOB”)
and
are
required
to
be
independent
with
respect
to
the
Funds
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
are
free
of
material
misstatement
whether
due
to
error
or
fraud.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements.
Our
procedures
included
confirmation
of
securities
owned
as
of
March
31,
2020,
by
correspondence
with
the
custodian
and
brokers.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
We
have
served
as
the
Funds’
auditor
since
2004.
COHEN
&
COMPANY,
LTD.
Cleveland,
Ohio
May
26,
2020
Additional
Information
March
31,
2020
(Unaudited)
Annual
Report
I
March
31,
2020
53
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.
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‐PORT.
Forms
N-PORT
are
available
free
of
charge
on
the
SEC’s
website
at
www.sec.gov
or
may
be
reviewed
and
copied
at
the
SEC’s
Public
Reference
Room
in
Washington,
D.C.,
and
information
on
the
operation
of
the
Public
Reference
Room
may
be
obtained
by
calling
1‐800‐SEC‐0330.
COMPENSATION
OF
TRUSTEES
No
interested
Trustee,
officer,
or
employee
of
the
Funds
receives
any
compensation
from
the
Funds
or
Adviser
for
serving
as
an
officer
or
Trustee
of
the
Funds.
Prior
to
January
1,
2020,
each
Independent
Trustee
received
$5,000
for
each
Trustees
meeting
attended
in‐person
and
$3,000
for
each
Trustees
meeting
attended
by
telephone;
members
of
the
Audit
Committee
were
paid
$1,500
per
Audit
Committee
meeting,
and
the
Audit
Committee
Chairman
was
paid
$3,000
per
Audit
Committee
meeting.
As
of
January
1,
2020,
each
Independent
Trustee
receives
an
annual
retainer
of
$8,000,
$5,000
for
each
regular
meeting
or
special
in-person
meeting
of
the
Trustees,
and
$2,000
for
each
special
meeting
attended
by
telephone;
members
of
the
Audit
Committee
are
paid
$1,600
per
Audit
Committee
meeting,
and
the
Audit
Committee
Chairman
is
paid
$3,200
per
Audit
Committee
meeting.
The
Audit
Committee
will
normally
meet
twice
a
year.
Independent
Trustee
and
Audit
Committee
compensation
is
paid
by
the
Adviser.
TAX
DESIGNATIONS
For
federal
income
tax
purposes,
dividends
from
short-term
capital
gains
are
classified
as
ordinary
income.
The
Funds
designate
the
following
for
federal
income
tax
purposes
for
distributions
made
during
the
calendar
year
ended
December
31,
2019
:
Pursuant
to
Section
852(b)(3)
of
the
Internal
Revenue
Code,
CornerCap
Balanced
Fund
Fund
and
CornerCap
Large/Mid-
Cap
Value
Fund
designated
$720,343,
and
$1,058,323
,
as
long‐term
capital
gain
dividends,
respectively.
CornerCap
Balanced
Fund
CornerCap
Small-
Cap
Value
Fund
CornerCap
Large/
Mid-Cap
Value
Fund
Dividends
Received
Deduction
49.54
%
100.00%
72.10
%
Qualified
Dividend
Income
5
1.65
%
100.00%
75.19
%
Additional
Information
March
31,
2020
(Unaudited)
54
www.cornercapfunds.com
TRUSTEES
AND
OFFICERS
The
business
affairs
of
the
Funds
are
managed
under
the
direction
of
the
Funds’
Board
of
Trustees
in
accordance
with
the
laws
of
the
State
of
Massachusetts.
Information
pertaining
to
the
Trustees
and
Officers
of
the
Funds
are
set
forth
below.
Trustees
who
are
not
deemed
to
be
“interested
persons”
of
the
Trust
as
defined
in
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
are
referred
to
as
“Independent
Trustees.”
Trustees
who
are
deemed
to
be
interested
persons
of
the
Trust
as
defined
in
the
1940
Act
are
referred
to
as
“Interested
Trustees”.
The
Funds’
Statement
of
Additional
Information
includes
additional
information
about
the
trustees
and
is
available
upon
request
by
calling
toll-free
1-888-
813-8637.
INTERESTED
TRUSTEES
Name,
Address
and
Year
of
Birth
Position
with
the
Trust,
Term
of
Office
and
Tenure
Number
of
Funds
in
Complex
Overseen
by
Trustee
Principal
Occupation(s)
during
past
5
years
Other
Trusteeships/Directorships
by
Trustee
Thomas
E.
Quinn
The
Peachtree,
Suite
1700
1355
Peachtree
St.
NE
Atlanta,
GA
30309
Born:
1945
Trustee,
Chairman
of
the
Board,
President,
Chief
Financial
Officer,
and
Treasurer
since
1992
3
Chief
Executive
Officer,
CornerCap
Investment
Counsel;
Vice-Chairman,
Church
Investment
Group
(non-profit)
(2013-present).
None
INDEPENDENT
TRUSTEES
Name,
Address*
and
Year
of
Birth
Position
with
the
Trust,
Term
of
Office
and
Tenure
Number
of
Funds
in
Complex
Overseen
by
Trustee
Principal
Occupation(s)
during
past
5
years
Other
Trusteeships/Directorships
by
Trustee
Richard
L.
Boger
Born:
1946
Trustee
since
1992
3
President
&
CEO,
Lex-Tek
International,
Inc.
(a
financial
services
and
software
consulting
company),
(1991-present);
Managing
Trustee,
Boger-Owen
FNDN
(2012-present);
Business
Manager,
Owen
Holdings,
LLLP
(2003-2013);
Heathland
Holdings,
LLP,
and
General
Partner,
Shawnee
Meadow
Holdings,
LLLP
(real
estate
and
related
companies)
(2004-present).
Director,
Gray
Television,
Inc.
since
1991.
Laurin
M.
McSwain
Born:
1951
Trustee
since
1994
3
Attorney,
Lefkoff,
Duncan,
Grimes,
McSwain
&
Hass,
(2003-present).
None
Leslie
W.
Gates
Born:
1955
Trustee
since
2006
3
Retired,
2005.
Partner,
Williams
Benator
&
Libby,
LLP
(CPA
firm)
(1989-2004).
None
Additional
Information
March
31,
2020
(Unaudited)
Annual
Report
I
March
31,
2020
55
INDEPENDENT
TRUSTEES
Name,
Address*
and
Year
of
Birth
Position
with
the
Trust,
Term
of
Office
and
Tenure
Number
of
Funds
in
Complex
Overseen
by
Trustee
Principal
Occupation(s)
during
past
5
years
Other
Trusteeships/Directorships
by
Trustee
G.
Harry
Durity
Born:
1946
Trustee
1992-2004,
since
2010
3
Senior
Advisor,
Consultant,
New
Mountain
Capital,
LLC
(asset
management
company)
(2005-present);
Director,
Overland
Solutions,
Inc.
(audit
services)
(2009-2014);
Director,
Alexander
Mann
Solutions
(Private
company)
(2014-present).
Former
Director,
National
Medical
Health
Card;
Former
Director,
WebSite
Pros,
Inc.
*All
Independent
Trustees
can
be
contacted
via
the
Funds
at:
P.O.
Box
588,
Portland,
ME
04112.
OFFICERS
Name,
Address
and
Year
of
Birth
Position
with
the
Trust,
Term
of
Office
and
Tenure
Number
of
Funds
in
Complex
Overseen
by
Trustee
Principal
Occupation(s)
during
past
5
years
Other
Trusteeships/Directorships
by
Trustee
Richard
T.
Bean
The
Peachtree,
Suite
1700
1355
Peachtree
St.
NE
Atlanta,
GA
30309
Born:
1962
Vice
President
of
the
Funds
since
1996
N/A
Vice
President
of
the
Funds
and
Portfolio
Manager,
CornerCap
Investment
Counsel.
N/A
John
A.
Hackney
The
Peachtree,
Suite
1700
1355
Peachtree
St.
NE
Atlanta,
GA
30309
Born:
1966
Chief
Compliance
Officer
since
2004
and
Secretary
of
the
Funds
since
1999
N/A
Chief
Compliance
Officer,
CornerCap
Investment
Counsel.
Chief
Compliance
Officer,
Church
Investment
Group
(non-profit)
J.
Cannon
Carr,
Jr.
The
Peachtree,
Suite
1700
1355
Peachtree
St.
NE
Atlanta,
GA
30309
Born:
1967
Vice
President
of
the
Funds
since
2019
N/A
Chief
Investment
Officer,
CornerCap
Investment
Counsel.
N/A
www.cornercapfunds.com
888-813-8637
DISTRIBUTOR
Foreside
Fund
Services,
LLC
Three
Canal
Plaza,
Suite
100
Portland,
Maine
04101
www.foreside.com
This
report
is
submitted
for
the
general
information
of
the
shareholders
of
the
Funds.
It
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
an
effective
prospectus,
which
includes
information
regarding
the
Funds’
risks,
objectives,
fees
and
expenses,
experience
of
their
management
and
other
information.
232-ANR-0320
ITEM 2. CODE OF ETHICS.
The registrant, as of the end of the period covered by this report, has adopted a code of ethics that applies to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller or any persons performing similar functions on behalf of the registrant. The registrant’s Code of Ethics is attached as an Exhibit hereto under Item 13(a)(1) of this Form N-CSR.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The Board of Trustees of the registrant has determined that there is no “audit committee financial expert” serving on its audit committee. In this regard, the Board also determined that having such a person serve on its audit committee was unnecessary in light of the structure of the registrant’s operations and the broad range of experience and expertise in financial matters possessed by the members of the audit committee, even though no such member was considered to have been an audit committee financial expert under the relatively narrow definition of such term.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees - The aggregate fees billed for each of the last two fiscal years (the “Reporting Periods”) for professional services rendered by the Registrant’s principal accountant for the audit of the Registrant’s annual financial statements, or services that are normally provided by the principal accountant in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $28,750 in 2019 and $21,000 in 2020.
(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 2019 and $0 in 2020.
(c) Tax Fees - The aggregate fees billed in the Reporting Periods for professional services rendered by the principal accountant to the Registrant for tax compliance, tax advice and tax planning were $6,300 in 2019 and $6,300 in 2020. 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 2019 and $0 in 2020.
(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 2019 and $0 in 2020. There were no fees billed in either of the Reporting Periods for non-audit services rendered by the principal accountant to the Registrant’s investment adviser or any Affiliate.
(h) Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) Included as part of the report to shareholders under Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Note applicable.
ITEM 11. CONTROLS AND PROCEDURES
(a) The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in
Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13. EXHIBITS.
(a)(1) Code of Ethics.
(a)(3) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant CornerCap Group of Funds
By: | /s/ Thomas E. Quinn | |
Thomas E. Quinn | ||
President | ||
Date: | May 27, 2020 |
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 27, 2020 |