As filed with the Securities and Exchange Commission on June 1, 2022
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-04581
CORNERCAP GROUP OF FUNDS
The Peachtree, Suite 1700
1355 Peachtree Street NE
Atlanta, GA 30309
Zac Tackett
Atlantic Fund Services, LLC
Three Canal Plaza, Suite 600
Portland, ME 04101
Registrant’s telephone number, including area code: (404) 870-0700
Date of fiscal year end: March 31
Date of reporting period: April 1, 2021 – March 31, 2022
ITEM 1. REPORT TO STOCKHOLDERS.
Annual
Report
March
31,
2022
CornerCap
Small-Cap
Value
Fund
Table
of
Contents
Manager’s
Report
to
Shareholders
(Unaudited)
1
Fund
Expenses
(Unaudited)
7
Schedule
of
Investments
9
Statement
of
Assets
and
Liabilities
19
Statement
of
Operations
20
Statements
of
Changes
in
Net
Assets
21
Financial
Highlights
22
Notes
to
Financial
Statements
24
Report
of
Independent
Registered
Public
Accounting
Firm
31
Additional
Information
(Unaudited)
32
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2022
Annual
Report
I
March
31,
2022
1
MANAGEMENT
DISCUSSION
OF
FUND
PERFORMANCE
For
the
twelve
months
ended
March
31,
2022,
the
CornerCap
Small
Cap
Value
fund
returned
9.14%,
beating
the
Russell
2000
Value
Index’s
(“Russell”)
return
of
3.32%.
In
a
year
of
high
volatility—driven
by
COVID
outbreaks,
surging
demand,
supply
shortages,
rising
rates,
and
mounting
inflation
expectations—stocks
in
the
small
capitalization
category
generally
followed
a
rational
pattern.
Valuation
mattered,
as
did
above-average
quality
of
fundamentals.
In
contrast,
unprofitable
companies
with
weaker
financial
profiles
and
highest
expectations
struggled.
In
this
environment,
our
strategy
tends
to
do
very
well.
Importantly,
for
the
initial
12-18
months
of
the
pandemic
(2020
and
first
half
of
2021),
investors
rewarded
the
largest
of
small
stocks
with
the
highest
growth
outlooks;
many
of
these
favorites,
including
the
high-flying
meme
“concept”
stocks,
were
often
unprofitable.
We
had
written
how
we
believed
this
sentiment
had
become
unsustainable,
according
to
our
fundamental
models,
and
our
strategy
was
putting
greater
emphasis
on
high
quality,
cyclical
stocks
at
reasonable
prices
that
might
benefit
from
an
improving
US
economy.
As
market
froth
began
to
unwind
last
fall,
our
strategy
was
well
positioned
for
an
environment
of
improving
economic
growth,
moderate
inflation,
and
at
least
a
reasonable
rise
in
interest
rates.
The
key
components
of
our
research
system
performed
extremely
well
for
the
year
overall.
Specifically:
•
Our
stocks
ranked
as
Buys
beat
those
ranked
as
Sells
by
as
much
as
800
to
1000
basis
points
(the
spread)
each
quarter
of
the
year.
This
consistency
was
key
to
our
relative
performance.
•
In
particular,
valuation
mattered
throughout
the
year.
Stocks
with
the
lowest
multiples
of
free
cash
flow
were
among
the
best
performers.
We
saw
similar
trends
in
other
important
Value
metrics
like
price
to
earnings.
Factors
tied
to
fundamental
improvement—such
as
positive
earnings
revisions—as
well
as
positive
stock
price
momentum
also
added
diversifying
benefits.
•
Our
screens
against
stocks
carrying
excess
fundamental
risk
were
mixed
but,
importantly,
improved
throughout
the
year.
There
were
periods
where
stocks
with
weaker
fundamental
characteristics
performed
best,
but
overall
the
stocks
passing
our
screens
against
risk
performed
consistently
well,
particularly
in
the
most
recent
quarter.
•
Stock
selection
was
strong
across
eight
of
the
eleven
principal
sectors.
Notably,
stocks
in
financials
(especially
banks),
materials
and
health
care
accounted
for
almost
90%
of
our
relative
outperformance
for
the
year.
Our
underweight
to
Energy
stocks
and
weaker
stock
selection
in
Consumer
Services
were
partial
detractors.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2022
2
www.cornercapfunds.com
Enhancements
to
the
Model:
Biotech
We’d
like
to
report
on
an
important
enhancement
we
made
to
our
Fundametrics®
research
model
this
year.
Historically,
the
model
excluded
low
revenue
companies.
However,
with
the
Russell
reconstitution
last
summer
and
the
explosion
of
new
biotech
names
to
the
Russell
2000
Value
index,
the
CornerCap
research
team
explored
unprofitable
Biotech
as
an
additional
peer
group.
As
of
the
end
of
the
quarter,
this
new
peer
group
was
added
to
the
model.
The
team
set
out
to
develop
relevant
factors
around
the
important
drivers
of
biotech
stocks,
which
largely
centers
on
drug
pipelines.
The
strength
of
the
Fundametrics®
research
process
is
in
stock
selection
and
the
investment
team’s
research
of
Biotechnology
factors
indicates
solid
discrimination
within
the
peer
group.
Quantifiable
datapoints
also
indicates
now
is
a
relatively
attractive
time
to
start
adding
the
peer
group
to
the
portfolio
based
on
how
the
group
is
priced
relative
to
their
R&D
spending.
The
model’s
objective
throughout
its
process
is
not
in
picking
the
star
stock,
but
in
creating
a
portfolio
of
stocks
with
characteristics
that
have
historically
provided
alpha
discrimination
within
the
peer
group.
The
addition
of
the
Biotech
Peer
Group
will
increase
portfolio
name
count
by
approximately
40
to
50
names
with
a
starting
allocation
to
the
group
targeted
at
3%
of
the
portfolio.
The
following
NAV
returns
are
presented
as
of
3/31/2022,
are
net
of
management
fee
and
other
operating
costs,
and
reflect
the
reinvestment
of
distributions.
For
periods
over
one-year,
average
annual
returns
are
presented:
Past
performance
does
not
guarantee
future
results.
Current
performance
may
be
lower
or
higher
than
the
performance
quoted.
To
obtain
performance
as
of
the
most
recent
month
end,
please
call
(888)
813-8637.
The
investment
return
and
principal
value
of
your
investment
will
fluctuate,
so
investors'
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
The
gross
expense
ratios
for
the
fund
is
1.30%
for
CSCVX.
The
Fund
charges
a
1.00%
redemption
fee
for
shares
redeemed
within
60
days
of
purchase.
BOTTOM
LINE
The
Fundametrics
®
Small
Cap
Value
strategy
broadly
performed
as
we
would
expect
over
the
course
of
the
year,
despite
the
overwhelming
influence
of
macro
forces,
from
economic
re-opening
to
Fed
policy
to
Russia’s
invasion
of
Ukraine
to
growing
fear
of
global
recession.
From
a
big
picture
perspective,
we
continue
to
believe
that
inflation
will
persist
(although
peaking
this
summer),
perhaps
1
Yr
5
Yr
10
Yr
INVESTOR
SHARES
CSCVX
9.14
%
9.8
0%
12.03
%
Russell
2000
Value
Index
3.32
%
8.57
%
10.54
%
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2022
Annual
Report
I
March
31,
2022
3
exiting
2022
at
4%-5%,
and
that
rates
will
continue
to
rise
as
the
Federal
Reserve
must
combat
rising
prices.
History
shows
that
the
risk
of
recession
does
increase
over
the
next
two
years
in
this
type
of
environment.
We
therefore
continue
to
expect
volatility
in
equity
markets.
Small-cap
stocks
as
a
group
continue
to
trade
at
statistically
significant
valuation
discounts
to
large-caps,
improving
the
odds
of
better
relative
performance.
Small
caps
also
have
more
of
their
operations
domestically,
which
should
benefit
them
if
non-US
economies
struggle.
In
the
current
environment,
the
Fundametrics®
models
have
been
decreasing
the
weight
to
higher
beta
stocks
and
will
continue
to
prioritize
companies
with
healthier
balance
sheets
and
strong
fundamental
trends.
CornerCap
Investment
Counsel
March
31,
2022
The
views
in
this
letter
reflect
the
opinions
of
CornerCap
Group
of
Funds
as
of
March
31,
2022
and
may
not
necessarily
reflect
the
same
views
on
the
date
this
letter
is
first
published
or
any
time
thereafter.
These
views
are
intended
to
help
shareholders
in
understanding
the
fund’s
investment
methodology
and
do
not
constitute
investment
advice.
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
companies
may
be
more
volatile
and
less
liquid
due
to
limited
resources
or
product
lines
and
more
sensitive
to
economic
factors.
As
interest
rates
rise
the
value
of
bond
prices
will
decline.
If
the
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,
2022
4
www.cornercapfunds.com
Investment
Performance
through
March
31,
2022
(In
Thousands)
Total
Return
for
the
period
ended
March
31,
2022
Past
performance
does
not
guarantee
future
results.
The
performance
data
quoted
does
not
reflect
the
deduction
of
the
1%
redemption
fee
imposed
if
shares
are
redeemed
or
exchanged
within
sixty
days
of
purchase
or
the
deduction
of
taxes
that
a
shareholder
would
pay
on
Fund
distributions
or
the
redemption
of
Fund
shares.
Data
quoted
represents
past
performance.
1
Year
5
Year
10
Year
Since
Inception
(a)
Expense
Ratio
CornerCap
Small-Cap
Value
Fund
--
Investor
Shares
(b)
9.14%
9.80%
12.03%
9.97%
1.30%
(c)
CornerCap
Small-Cap
Value
Fund
--
Institutional
Shares
(b)(d)
9.45%
10.13%
12.24%
10.04%
1.00%
Russell
2000
Value
Index
(e)
3.32%
8.57%
10.54%
10.73%
Russell
2000
Index
(f)
(5.79)%
9.74%
11.04%
9.85%
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2022
Annual
Report
I
March
31,
2022
5
Investment
return
and
share
price
will
fluctuate
with
market
conditions,
and
investors
may
have
a
gain
or
loss
when
shares
are
sold.
Mutual
fund
performance
changes
over
time
and
currently
may
be
significantly
lower
than
stated
above.
Performance
is
updated
and
published
monthly.
Call
888-813-8637
for
month-end
performance
figures.
The
index
figures
do
not
reflect
any
deduction
for
fees,
expenses
or
taxes.
It
is
not
possible
to
invest
directly
in
an
index.
(a)
The
Small-Cap
Value
Fund’s
Investor
Shares
began
operations
on
September
30,
1992
and
the
Institutional
Shares
began
operations
on
December
29,
2015.
(b)
The
Fund’s
total
returns
include
the
reinvestment
of
dividend
and
capital
gain
distributions
but
have
not
been
adjusted
for
any
income
taxes
payable
by
shareholders
on
these
distributions.
(c)
The
total
Annual
Fund
Operating
Expenses
(gross)
are
1.30%.
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,
2022
,
without
the
Board
of
Trustees’
approval.
(d)
The
Small-Cap
Value
Fund’s
Institutional
Shares
performance
for
the
10-year
and
since
inception
periods
are
blended
average
returns
which
include
the
returns
of
the
Investor
Shares
prior
to
commencement
of
operations
of
the
Institutional
Shares.
(e)
The
Russell
2000®
Value
Index
measures
the
2,000
smallest
of
the
3,000
largest
U.S.
Companies
(based
on
total
market
capitalization)
that
have
lower
price-to-book
ratios
and
lower
forecasted
growth
values.
(f)
The
Russell
2000®
Index
is
an
index
that
measures
the
performance
of
the
2,000
smallest
companies
in
the
Russell
3000®
Index.
The
index
figures
do
not
reflect
any
deduction
for
fees,
expenses
or
taxes.
It
is
not
possible
to
invest
directly
in
an
index.
Manager’s
Report
to
Shareholders
(Unaudited)
March
31,
2022
6
www.cornercapfunds.com
Sector
Allocation
as
a
Percentage
of
Total
Investments
at
March
31,
2022*
*
These
allocations
may
not
reflect
the
current
or
future
position
of
the
portfolio.
Fund
Expenses
(Unaudited)
March
31,
2022
Annual
Report
I
March
31,
2022
7
As
a
shareholder
of
the
Fund,
you
incur
two
types
of
costs:
(1)
transaction
costs,
including
wire
fees,
redemption
fees,
and
low
balance
fees,
and
(2)
ongoing
costs,
including
management
fees
and
other
Fund
expenses.
This
example
is
intended
to
help
you
understand
your
ongoing
costs
(in
dollars)
of
investing
in
the
Fund,
and
to
compare
these
costs
with
the
ongoing
costs
of
investing
in
other
mutual
funds.
The
example
is
based
on
an
investment
of
$1,000
invested
at
the
beginning
of
the
period
and
held
for
the
entire
period
from
October
1,
2021
through
March
31,
2022.
Actual
Expenses
–
The
first
line
under
each
share
class
of
the
table
below
provides
information
about
actual
account
values
and
actual
expenses.
You
may
use
the
information
in
this
line,
together
with
the
amount
you
invested,
to
estimate
the
expenses
that
you
paid
over
the
period.
Simply
divide
your
account
value
by
$1,000
(for
example,
an
$8,600
account
value
divided
by
$1,000
=
8.6),
then
multiply
the
result
by
the
number
in
the
first
line
under
the
heading
entitled
“Expenses
Paid
During
Period”
to
estimate
the
expenses
you
paid
on
your
account
during
the
period.
Hypothetical
Example
for
Comparison
Purposes
–
The
second
line
under
each
share
class
of
the
table
below
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on
the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses,
which
is
not
the
Fund’s
actual
return.
The
hypothetical
account
values
and
expenses
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period.
You
may
use
this
information
to
compare
the
ongoing
costs
of
investing
in
the
Fund
and
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
the
expenses
shown
in
the
table
are
meant
to
highlight
your
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
such
as
wire
fees,
redemption
fees,
and
low
balance
fees.
Therefore,
the
second
line
of
the
table
is
useful
in
comparing
ongoing
costs
only
and
will
not
help
you
determine
the
relative
total
costs
of
owning
different
funds.
In
addition,
if
these
transactional
costs
were
included,
your
costs
would
have
been
higher.
Beginning
Account
Value
October
1,
2021
Ending
Account
Value
March
31,
2022
Expenses
Paid
During
Period
(a)
Investor
Shares
Actual
$
1,000.00
$
1,048.00
$
6.64
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,018.45
$
6.54
Institutional
Shares
Actual
$
1,000.00
$
1,049.46
$
5.11
Hypothetical
(5%
return
before
expenses)
$
1,000.00
$
1,019.95
$
5.04
(a)
These
calculations
are
based
on
the
expenses
incurred
in
the
most
recent
fiscal
half-year.
The
period’s
annualized
six-month
expense
ratio
is 1.30%
for
CornerCap
Small-Cap
Value
Fund
—
Investor
Shares
and
1.00%
for
CornerCap
Small-Cap
Value
Fund
—
Institutional
Shares,
respectively.
The
dollar
amounts
shown
as
“Expenses
Paid
During
Period” are
equal
to
the
annualized
expense
ratio
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
the
number
of
days
in
the
most
recent
half-year
(182),
then
divided
by
365.
Fund
Expenses
(Unaudited)
March
31,
2022
8
www.cornercapfunds.com
The
expenses
shown
in
the
table
are
meant
to
highlight
and
help
you
compare
ongoing
costs
only
and
do
not
reflect
any
transactional
costs,
account
maintenance
fees
or
charges
by
processing
organizations.
The
Fund
does
not
charge
any
account
maintenance
fees
or
sales
load,
but
do
charge
a
1.00%
redemption
fee
that
is
applicable
to
all
redemptions
(sales
or
exchanges)
made
within
sixty
(60)
days
of
an
initial
purchase
of
shares;
provided,
however,
that
the
redemption
fee
will
not
apply
if
the
shares
to
be
redeemed
are
held
in
a
retirement
account
subject
to
the
Employee
Retirement
Income
Security
Act.
Schedule
of
Investments
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
9
Annual
Report
I
March
31,
2022
Shares
Fair
Value
COMMON
STOCK
(98.3%)
Aerospace
&
Defense
(
0.4%
)
Barnes
Group,
Inc.
13,938
$
560,168
Auto
Parts
&
Equipment
(
0.8%
)
Allison
Transmission
Holdings,
Inc.
17,467
685,754
Standard
Motor
Products,
Inc.
10,865
468,716
1,154,470
Banks
(
14.4%
)
Amalgamated
Financial
Corp.
17,245
309,893
Ameris
Bancorp
12,777
560,655
Bank
of
Marin
Bancorp
8,035
281,787
Bar
Harbor
Bankshares
15,066
431,189
BayCom
Corp.
18,585
404,595
Cathay
General
Bancorp
6,917
309,536
Central
Pacific
Financial
Corp.
21,557
601,440
Civista
Bancshares,
Inc.
27,691
667,353
CNB
Financial
Corp.
29,612
779,388
Community
Trust
Bancorp,
Inc.
8,512
350,694
Enterprise
Financial
Services
Corp.
11,079
524,147
Farmers
National
Banc
Corp.
33,895
578,249
Financial
Institutions,
Inc.
17,912
539,689
Finwise
Bancorp
(a)
18,082
310,106
First
Bank/Hamilton
NJ
25,868
367,843
First
Financial
Corp.
12,709
550,045
First
Merchants
Corp.
13,050
542,880
First
Mid
Bancshares,
Inc.
13,716
527,929
FNB
Corp.
41,268
513,787
Fulton
Financial
Corp.
16,830
279,715
Hancock
Whitney
Corp.
13,999
730,048
Hanmi
Financial
Corp.
31,116
765,765
Hope
Bancorp,
Inc.
42,164
677,997
Horizon
Bancorp,
Inc./IN
27,588
515,068
Lakeland
Bancorp,
Inc.
32,916
549,697
Mercantile
Bank
Corp.
14,206
503,177
Merchants
Bancorp/IN
20,269
554,965
Midland
States
Bancorp,
Inc.
25,792
744,357
MidWestOne
Financial
Group,
Inc.
23,008
761,565
OP
Bancorp
30,629
424,212
PacWest
Bancorp
13,473
581,090
PCB
Bancorp
13,788
316,435
Peapack
-Gladstone
Financial
Corp.
8,008
278,278
Peoples
Bancorp,
Inc.
20,273
634,748
Preferred
Bank/Los
Angeles
CA
4,520
334,887
QCR
Holdings,
Inc.
13,365
756,325
Schedule
of
Investments
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
10
www.cornercapfunds.com
Shares
Fair
Value
Banks
(14.4%)
(continued)
RBB
Bancorp
27,123
$
637,119
Republic
Bancorp,
Inc.,
Class A
12,017
540,044
Sierra
Bancorp
13,490
336,980
Synovus
Financial
Corp.
5,365
262,885
The
First
Bancshares,
Inc.
16,735
563,300
TrustCo
Bank
Corp.
NY
18,843
601,657
Western
New
England
Bancorp,
Inc.
40,901
365,655
21,867,174
Beverages
-
Non-alcoholic
(
0.4%
)
Coca-Cola
Consolidated,
Inc.
1,281
636,465
Building
Materials
(
2.6%
)
Forestar
Group,
Inc.
(a)
24,153
428,957
Great
Lakes
Dredge
&
Dock
Corp.
(a)
20,245
284,038
JELD-WEN
Holding,
Inc.
(a)
23,383
474,207
KB
Home
11,647
377,130
Masonite
International
Corp.
(a)
2,747
244,318
Patrick
Industries,
Inc.
7,391
445,677
Quanex
Building
Products
Corp.
23,304
489,151
Toll
Brothers,
Inc.
8,282
389,420
Tutor
Perini
Corp.
(a)
47,154
509,263
UFP
Industries,
Inc.
3,420
263,887
3,906,048
Chemicals
(
2.8%
)
American
Vanguard
Corp.
35,448
720,303
Haynes
International,
Inc.
17,039
725,861
Ingevity
Corp.
(a)
9,783
626,797
Kronos
Worldwide,
Inc.
43,050
668,136
Minerals
Technologies,
Inc.
4,443
293,905
The
Chemours
Co.
17,918
564,059
Tronox
Holdings
PLC,
Class
A
13,525
267,660
Valhi,
Inc.
13,036
382,085
4,248,806
Coal
Operations
(
0.6%
)
Alpha
Metallurgical
Resources,
Inc.
(a)
4,659
614,802
Ramaco
Resources,
Inc.
22,098
349,148
963,950
Commercial
Services
(
6.2%
)
Cars.com,
Inc.
(a)
20,762
299,596
Cogent
Communications
Holdings,
Inc.
4,427
293,732
CoreCivic
,
Inc.
(a)
61,159
683,146
Schedule
of
Investments
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
11
Annual
Report
I
March
31,
2022
Shares
Fair
Value
Commercial
Services
(6.2%)
(continued)
Heidrick
&
Struggles
International,
Inc.
15,982
$
632,568
Heritage-Crystal
Clean,
Inc.
(a)
10,452
309,484
Huron
Consulting
Group,
Inc.
(a)
11,477
525,761
Kelly
Services,
Inc.,
Class A
14,448
313,377
ManpowerGroup
,
Inc.
5,186
487,069
Medifast
,
Inc.
1,414
241,483
Mimecast,
Ltd.
(a)
9,106
724,473
Resources
Connection,
Inc.
35,987
616,817
SP
Plus
Corp.
(a)
22,600
708,736
The
Aaron's
Co.,
Inc.
26,252
527,140
The
Hackett
Group,
Inc.
27,581
636,018
Vectrus
,
Inc.
(a)
16,755
600,834
WEX,
Inc.
(a)
3,343
596,558
Yelp,
Inc.
(a)
19,179
654,196
ZipRecruiter,
Inc.
(a)
23,980
551,060
9,402,048
Computers
(
1.1%
)
Box,
Inc.
(a)
22,691
659,400
CommVault
Systems,
Inc.
(a)
10,233
678,960
Qualys
,
Inc.
(a)
2,290
326,119
1,664,479
Distribution/Wholesale
(
0.7%
)
G-III
Apparel
Group,
Ltd.
(a)
16,789
454,142
ScanSource
,
Inc.
(a)
17,448
607,016
1,061,158
Diversified
Financial
Services
(
2.9%
)
Affiliated
Managers
Group,
Inc.
2,148
302,761
BGC
Partners,
Inc.,
Class A
68,509
301,440
Cushman
&
Wakefield
PLC
(a)
27,121
556,252
Evercore
,
Inc.,
Class A
4,320
480,902
International
Money
Express,
Inc.
(a)
13,358
275,308
Moelis
&
Co.,
Class A
10,790
506,590
NMI
Holdings,
Inc.,
Class A
(a)
29,133
600,722
Piper
Sandler
Cos.
1,588
208,425
RE/MAX
Holdings,
Inc.
18,750
519,938
StoneX
Group,
Inc.
(a)
4,498
333,887
Virtus
Investment
Partners,
Inc.
1,177
282,468
4,368,693
Electric
(
2.5%
)
ALLETE,
Inc.
9,508
636,846
Schedule
of
Investments
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
12
www.cornercapfunds.com
Shares
Fair
Value
Electric
(2.5%)
(continued)
Hawaiian
Electric
Industries,
Inc.
14,858
$
628,642
Otter
Tail
Corp.
9,008
563,000
Pinnacle
West
Capital
Corp.
9,627
751,869
PNM
Resources,
Inc.
12,814
610,843
Unitil
Corp.
10,809
539,153
3,730,353
Electrical
Components
&
Equipment
(
2.0%
)
IPG
Photonics
Corp.
(a)
5,456
598,850
Jabil,
Inc.
11,127
686,870
Sanmina
Corp.
(a)
15,524
627,480
TTM
Technologies,
Inc.
(a)
36,300
537,966
Vishay
Intertechnology
,
Inc.
28,621
560,972
3,012,138
Electronics
(
0.6%
)
Avnet,
Inc.
7,120
289,001
OSI
Systems,
Inc.
(a)
7,053
600,351
889,352
Energy-Alternate
Sources
(
0.2%
)
REX
American
Resources
Corp.
(a)
2,723
271,211
Engineering
&
Construction
(
1.2%
)
EMCOR
Group,
Inc.
5,221
588,041
Mistras
Group,
Inc.
(a)
85,950
568,130
Sterling
Construction
Co.,
Inc.
(a)
26,124
700,123
1,856,294
Food
(
1.0%
)
Ingredion,
Inc.
3,455
301,103
John
B
Sanfilippo
&
Son,
Inc.
7,589
633,226
United
Natural
Foods,
Inc.
(a)
14,513
600,113
1,534,442
Gambling
(Non-Hotel)
(
1.3%
)
Everi
Holdings,
Inc.
(a)
29,300
615,300
Golden
Entertainment,
Inc.
(a)
10,954
636,099
Monarch
Casino
&
Resort,
Inc.
(a)
7,426
647,770
1,899,169
Healthcare
Products
(
2.6%
)
Avanos
Medical,
Inc.
(a)
18,363
615,161
Catalyst
Pharmaceuticals,
Inc.
(a)
75,466
625,613
InfuSystem
Holdings,
Inc.
(a)
28,162
275,988
Schedule
of
Investments
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
13
Annual
Report
I
March
31,
2022
Shares
Fair
Value
Healthcare
Products
(2.6%)
(continued)
Integer
Holdings
Corp.
(a)
6,904
$
556,255
Merit
Medical
Systems,
Inc.
(a)
9,893
658,082
Natus
Medical,
Inc.
(a)
25,802
678,077
NextGen
Healthcare,
Inc.
(a)
14,165
296,190
Sensus
Healthcare,
Inc.
(a)
29,658
300,139
4,005,505
Healthcare
Services
(
4.9%
)
Acadia
Healthcare
Co.,
Inc.
(a)
10,306
675,352
Agiliti
,
Inc.
(a)
31,534
665,367
Aveanna
Healthcare
Holdings,
Inc.
(a)
109,586
373,688
Computer
Programs
and
Systems,
Inc.
(a)
8,490
292,480
Exelixis
,
Inc.
(a)
37,372
847,223
MEDNAX,
Inc.
(a)
21,315
500,476
Option
Care
Health,
Inc.
(a)
24,237
692,209
Phibro
Animal
Health
Corp.,
Class A
26,230
523,289
Premier,
Inc.,
Class A
15,391
547,766
RadNet
,
Inc.
(a)
21,834
488,427
Sotera
Health
Co.
(a)
24,068
521,313
The
Ensign
Group,
Inc.
7,372
663,554
United
Therapeutics
Corp.
(a)
3,283
589,003
7,380,147
Home
Builders
(
0.3%
)
MDC
Holdings,
Inc.
6,259
236,841
Taylor
Morrison
Home
Corp.,
Class A
(a)
9,060
246,613
483,454
Hotels
(
0.8%
)
Bluegreen
Vacations
Holding
Corp.
(a)
20,099
594,328
Travel
+
Leisure
Co.
10,246
593,653
1,187,981
Household
Products
(
0.4%
)
Ennis,
Inc.
30,316
559,937
Insurance
(
3.0%
)
Axis
Capital
Holdings,
Ltd.
12,630
763,736
CNO
Financial
Group,
Inc.
25,413
637,612
Essent
Group,
Ltd.
13,727
565,690
MGIC
Investment
Corp.
20,041
271,556
Palomar
Holdings,
Inc.
(a)
4,911
314,255
Primerica,
Inc.
4,020
550,016
Schedule
of
Investments
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
14
www.cornercapfunds.com
Shares
Fair
Value
Insurance
(3.0%)
(continued)
Radian
Group,
Inc.
14,375
$
319,269
RenaissanceRe
Holdings,
Ltd.
3,674
582,366
Stewart
Information
Services
Corp.
4,407
267,108
United
Fire
Group,
Inc.
9,205
285,999
4,557,607
Lodging
(
0.4%
)
Century
Casinos,
Inc.
(a)
47,118
563,060
Machinery
-
Diversified
(
3.1%
)
Curtiss-Wright
Corp.
2,355
353,627
Gates
Industrial
Corp.
PLC
(a)
38,381
578,018
GrafTech
International,
Ltd.
59,336
570,812
Kadant
,
Inc.
3,105
602,960
Kennametal,
Inc.
16,947
484,853
Mueller
Water
Products,
Inc.,
Class A
45,738
590,935
Terex
Corp.
12,115
432,021
The
Manitowoc
Co.,
Inc.
(a)
36,275
547,027
Thermon
Group
Holdings,
Inc.
(a)
33,014
534,827
4,695,080
Media
(
0.6%
)
John
Wiley
&
Sons,
Inc.,
Class A
9,992
529,876
Lee
Enterprises,
Inc.
(a)
16,242
437,234
967,110
Metal
Fabricate
&
Hardware
(
2.4%
)
AZZ,
Inc.
12,130
585,151
Commercial
Metals
Co.
16,201
674,286
Helios
Technologies,
Inc.
8,463
679,156
Insteel
Industries,
Inc.
9,037
334,279
Ryerson
Holding
Corp.
17,495
612,675
The
Timken
Co.
9,635
584,844
TriMas
Corp.
7,273
233,390
3,703,781
Miscellaneous
Manufacturing
(
3.5%
)
Belden,
Inc.
9,686
536,605
Brady
Corp.,
Class A
3,582
165,739
Columbia
Sportswear
Co.
2,945
266,611
Crane
Co.
6,693
724,718
Energizer
Holdings,
Inc.
6,229
191,604
Harley-Davidson,
Inc.
15,101
594,979
Hillenbrand,
Inc.
12,522
553,097
Ichor
Holdings,
Ltd.
(a)
5,757
205,064
Moog,
Inc.,
Class A
6,931
608,542
Schedule
of
Investments
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
15
Annual
Report
I
March
31,
2022
Shares
Fair
Value
Miscellaneous
Manufacturing
(3.5%)
(continued)
O-I
Glass,
Inc.
(a)
42,041
$
554,100
Oxford
Industries,
Inc.
4,615
417,658
Pilgrim's
Pride
Corp.
(a)
20,499
514,525
5,333,242
Office
Furnishings
(
0.2%
)
Interface,
Inc.
27,451
372,510
Oil
&
Gas
(
8.6%
)
Amplify
Energy
Corp.
(a)
46,197
254,084
APA
Corp.
25,430
1,051,022
ChampionX
Corp.
(a)
28,632
700,911
CVR
Energy,
Inc.
23,864
609,487
EnLink
Midstream,
LLC
39,279
379,042
Equitrans
Midstream
Corp.
68,467
577,862
HF
Sinclair
Corp.
(a)
18,701
745,235
National
Fuel
Gas
Co.
8,888
610,606
NOW,
Inc.
(a)
65,080
717,832
Oasis
Petroleum,
Inc.
4,280
626,164
Ovintiv
,
Inc.
21,055
1,138,444
PDC
Energy,
Inc.
8,693
631,807
ProPetro
Holding
Corp.
(a)
58,480
814,626
Ranger
Oil
Corp.
(a)
15,774
544,676
SM
Energy
Co.
15,451
601,816
Solaris
Oilfield
Infrastructure,
Inc.,
Class A
79,766
900,558
Southwest
Gas
Holdings,
Inc.
8,341
653,017
UGI
Corp.
17,644
639,066
Whiting
Petroleum
Corp.
10,134
826,022
13,022,277
Pharmaceuticals
(
2.0%
)
Amphastar
Pharmaceuticals,
Inc.
(a)
22,988
825,269
Harmony
Biosciences
Holdings,
Inc.
(a)
12,253
596,108
Prestige
Consumer
Healthcare,
Inc.
(a)
11,000
582,340
USANA
Health
Sciences,
Inc.
(a)
7,199
571,961
Vanda
Pharmaceuticals,
Inc.
(a)
39,916
451,450
3,027,128
Real
Estate
Investment
Trusts
(
8.1%
)
Alexander
&
Baldwin,
Inc.
REIT
18,624
431,891
American
Assets
Trust,
Inc.
REIT
14,674
555,998
Apple
Hospitality
REIT,
Inc.
40,392
725,844
Armada
Hoffler
Properties,
Inc.
REIT
34,908
509,657
Braemar
Hotels
&
Resorts,
Inc.
REIT
113,902
703,914
Schedule
of
Investments
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
16
www.cornercapfunds.com
Shares
Fair
Value
Real
Estate
Investment
Trusts
(8.1%)
(continued)
Brixmor
Property
Group,
Inc.
REIT
20,455
$
527,944
Broadstone
Net
Lease,
Inc.
REIT
22,330
486,347
CareTrust
REIT,
Inc.
23,201
447,779
Chatham
Lodging
Trust
REIT
(a)
34,531
476,182
City
Office
REIT,
Inc.
20,811
367,522
Community
Healthcare
Trust,
Inc.
REIT
7,500
316,575
Corporate
Office
Properties
Trust
REIT
23,438
668,921
EastGroup
Properties,
Inc.
REIT
1,591
323,418
EPR
Properties
REIT
11,602
634,745
Essential
Properties
Realty
Trust,
Inc.
REIT
18,962
479,739
Getty
Realty
Corp.
REIT
16,929
484,508
Industrial
Logistics
Properties
Trust
REIT
21,925
497,040
Innovative
Industrial
Properties,
Inc.
REIT
2,521
517,813
National
Storage
Affiliates
Trust
REIT
6,764
424,509
Piedmont
Office
Realty
Trust,
Inc.,
Class A
REIT
27,731
477,528
Power
REIT
(a)
4,468
175,995
The
GEO
Group,
Inc.
REIT
(a)
46,982
310,551
Urban
Edge
Properties
REIT
25,599
488,941
Urstadt
Biddle
Properties,
Inc.,
Class A
REIT
25,031
470,833
Whitestone
REIT
52,492
695,519
12,199,713
Retail
(
5.6%
)
Brinker
International,
Inc.
(a)
12,379
472,383
Caleres
,
Inc.
25,668
496,162
Casey's
General
Stores,
Inc.
3,298
653,565
Chico's
FAS,
Inc.
(a)
63,135
303,048
Dine
Brands
Global,
Inc.
7,890
615,025
Herbalife
Nutrition,
Ltd.
(a)
6,945
210,850
Kimball
International,
Inc.,
Class B
30,799
260,252
La-Z-Boy,
Inc.
15,189
400,534
Movado
Group,
Inc.
6,661
260,112
Nature's
Sunshine
Products,
Inc.
(a)
35,143
591,105
PVH
Corp.
6,046
463,184
Rush
Enterprises,
Inc.,
Class A
13,598
692,274
Steven
Madden,
Ltd.
14,997
579,484
The
ONE
Group
Hospitality,
Inc.
(a)
22,814
239,775
Tilly's,
Inc.,
Class A
17,391
162,780
Titan
Machinery,
Inc.
(a)
19,027
537,703
Turning
Point
Brands,
Inc.
8,798
299,220
Vector
Group,
Ltd.
50,071
602,855
World
Fuel
Services
Corp.
23,124
625,273
8,465,584
Schedule
of
Investments
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
17
Annual
Report
I
March
31,
2022
Shares
Fair
Value
Savings
&
Loans
(
1.4%
)
Home
Bancorp,
Inc.
9,697
$
395,541
New
York
Community
Bancorp,
Inc.
24,284
260,324
OceanFirst
Financial
Corp.
29,666
596,287
Southern
Missouri
Bancorp,
Inc.
5,882
293,806
Washington
Federal,
Inc.
17,666
579,798
2,125,756
Semiconductors
(
1.8%
)
Amkor
Technology,
Inc.
14,032
304,775
Cirrus
Logic,
Inc.
(a)
7,522
637,790
Cohu
,
Inc.
(a)
18,224
539,430
MaxLinear
,
Inc.
(a)
6,885
401,740
Onto
Innovation,
Inc.
(a)
2,791
242,510
Photronics
,
Inc.
(a)
34,979
593,594
2,719,839
Software
(
4.7%
)
ACI
Worldwide,
Inc.
(a)
17,777
559,798
American
Software,
Inc.,
Class A
10,841
225,926
Blackbaud
,
Inc.
(a)
7,935
475,069
CDK
Global,
Inc.
13,605
662,291
ChannelAdvisor
Corp.
(a)
34,333
568,898
Convey
Health
Solutions
Holdings,
Inc.
(a)
46,939
306,981
ePlus
,
Inc.
(a)
11,452
641,999
EverCommerce
,
Inc.
(a)
47,756
630,379
Informatica
,
Inc.
(a)
31,982
631,325
Instructure
Holdings,
Inc.
(a)
27,298
547,598
Loyalty
Ventures,
Inc.
(a)
18,925
312,830
Progress
Software
Corp.
15,017
707,151
Sapiens
International
Corp.
NV
22,280
565,689
Sciplay
Corp.,
Class A
(a)
22,482
290,467
7,126,401
Telecommunications
(
1.2%
)
Extreme
Networks,
Inc.
(a)
46,083
562,674
InterDigital
,
Inc.
9,323
594,807
U.S.
Cellular
Corp.
(a)
21,619
653,542
1,811,023
Transportation
(
1.0%
)
Alaska
Air
Group,
Inc.
(a)
12,216
708,650
Daseke
,
Inc.
(a)
25,462
256,402
Schedule
of
Investments
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
18
www.cornercapfunds.com
Shares
Fair
Value
Transportation
(1.0%)
(continued)
Universal
Logistics
Holdings,
Inc.
25,931
$
522,510
1,487,562
TOTAL
COMMON
STOCK
(COST
$139,091,194)
148,821,115
INVESTMENTS,
AT
VALUE
(COST
$139,091,194)
98.3%
148,821,115
TOTAL
ASSETS
IN
EXCESS
OF
OTHER
LIABILITIES
1.7%
2,499,849
NET
ASSETS
100.0%
$
151,320,964
(a)
Non-income
producing
security.
Common
Abbreviations:
LLC
Limited
Liability
Company
PLC
Public
Limited
Company
REIT
Real
Estate
Investment
Trust
Statement
of
Assets
and
Liabilities
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
19
Annual
Report
I
March
31,
2022
ASSETS:
Investments,
at
value
(Cost
$139,091,194)
$
148,821,115
Cash
2,363,040
Receivable
for
fund
shares
subscribed
92,927
Dividends
receivable
141,203
Total
assets
$
151,418,285
LIABILITIES:
Advisory
fee
payable
$
63,236
Other
expenses
34,085
Total
liabilities
97,321
Net
assets
$
151,320,964
PRICING
OF
INVESTOR
SHARES
(NOTE
2
):
Net
Assets
$
82,115,070
Shares
Outstanding
5,516,302
Net
asset
value,
offering
and
redemption
price
per
share
$
14.89
PRICING
OF
INSTITUTIONAL
SHARES
(NOTE
2
):
Net
Assets
$
69,205,894
Shares
Outstanding
4,636,600
Net
asset
value,
offering
and
redemption
price
per
share
$
14.93
NET
ASSETS
CONSISTS
OF:
Paid-in
capital
$
131,204,927
Distributable
earnings
20,116,037
Net
assets
$
151,320,964
Statement
of
Operations
For
the
Year
Ended
March
31,
2022
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
20
www.cornercapfunds.com
INVESTMENT
INCOME:
Dividends,
(net
of
foreign
withholding
taxes
of
$2,636)
$
3,
229,214
Total
investment
income
3,
229,214
EXPENSES:
Advisory
fees
1,
481,482
Operating
expenses
Investor
Shares
388,867
Institutional
Shares
67,392
Total
expenses
1,
937,741
Less
fees
waived/reimbursed
by
investment
adviser
–
Net
expenses
1,937,741
Net
investment
income
1,
291,473
REALIZED
AND
UNREALIZED
GAIN
ON
INVESTMENTS:
Net
realized
gain
on
investments
39,386,985
Net
change
in
unrealized
appreciation
(depreciation)
on
investments
(25,635,543)
Net
gain
on
investments
13,751,442
Net
increase
in
net
assets
resulting
from
operations
$
15,042,915
Statements
of
Changes
in
Net
Assets
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
21
Annual
Report
I
March
31,
2022
CornerCap
Small-Cap
Value
Fund
For
the
Year
Ended
March
31,
2022
For
the
Year
Ended
March
31,
2021
OPERATIONS:
Net
investment
income
$
1,291,473
$
1,477,673
Net
realized
gain
on
investments
39,386,985
20,064,181
Net
change
in
unrealized
appreciation
(depreciation)
on
investments
(25,635,543)
63,317,291
Net
increase
in
net
assets
resulting
from
operations
15,042,915
84,859,145
DISTRIBUTIONS
TO
SHAREHOLDERS:
Investor
Shares
(23,164,663)
(646,742)
Institutional
Shares
(18,315,227)
(527,937)
Total
distributions
(41,479,890)
(1,174,679)
CAPITAL
SHARE
TRANSACTIONS:
Net
increase
(decrease)
from
capital
share
transactions
(see
Note
3
)
7,736,865
(2,029,302)
Redemption
fees
997
2,594
Net
increase
(decrease)
from
capital
share
transactions
7,737,862
(2,026,708)
Total
increase
(decrease)
in
net
assets
(18,699,113)
81,657,758
NET
ASSETS:
Beginning
of
year
170,020,077
88,362,319
End
of
year
$
151,320,964
$
170,020,077
Financial
Highlights
CornerCap
Small-Cap
Value
Fund
-
Investor
Shares
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
22
www.cornercapfunds.com
Selected
data
for
each
share
of
beneficial
interest
outstanding
throughout
the
years
indicated:
Year
Ended
March
31,
2022
Year
Ended
March
31,
2021
Year
Ended
March
31,
2020
Year
Ended
March
31,
2019
Year
Ended
March
31,
2018
INVESTOR
SHARES
PER
SHARE
OPERATING
PERFORMANCE
Net
asset
value,
beginning
of
year
$
18.11
$
9.67
$
13.12
$
15.27
$
16.68
INCOME/(LOSS)
FROM
INVESTMENT
OPERATIONS:
Net
investment
income
(a)
0.12
0.13
0.10
0.08
0.06
Net
realized
and
unrealized
gain
(loss)
on
investments
1.62
8.41
(3.47)
(0.38)
0.90
Total
Income/(Loss)
from
Investment
Operations
1.74
8.54
(3.37)
(0.30)
0.96
DIVIDENDS
AND
DISTRIBUTIONS
TO
SHAREHOLDERS:
Distributions
from
net
investment
income
(0.10)
(0.10)
(0.08)
(0.04)
(0.01)
Distributions
from
net
realized
gain
on
investments
(4.86)
–
–
(1.81)
(2.36)
Total
Dividends
and
Distributions
to
Shareholders
(4.96)
(0.10)
(0.08)
(1.85)
(2.37)
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
$
14.89
$
18.11
$
9.67
$
13.12
$
15.27
Total
Return
9.14%
88.56%
(25.91)%
(0.99)%
5.64%
RATIOS
AND
SUPPLEMENTAL
DATA:
Net
assets,
end
of
year
(in
000s)
$
82,115
$
106,613
$
60,472
$
85,230
$
84,789
RATIOS
TO
AVERAGE
NET
ASSETS:
Net
investment
income
0.66%
0.99%
0.74%
0.55%
0.36%
Net
expenses
1.30%
1.30%
1.30%
1.30%
1.30%
Gross
expenses
1.30%
1.30%
1.30%
1.30%
1.30%
Portfolio
turnover
rate
116%
121%
127%
147%
117%
footer
(a)
Calculated
based
on
average
shares
outstanding
during
each
year.
(b)
Less
than
$0.005
per
share.
Financial
Highlights
CornerCap
Small-Cap
Value
Fund
-
Institutional
Shares
The
accompanying
notes
to
financial
statements
are
an
integral
part
of
these
financial
statements.
23
Annual
Report
I
March
31,
2022
Selected
data
for
each
share
of
beneficial
interest
outstanding
throughout
the
years
indicated:
Year
Ended
March
31,
2022
Year
Ended
March
31,
2021
Year
Ended
March
31,
2020
Year
Ended
March
31,
2019
Year
Ended
March
31,
2018
INSTITUTIONAL
SHARES
PER
SHARE
OPERATING
PERFORMANCE
Net
asset
value,
beginning
of
year
$
18.16
$
9.69
$
13.15
$
15.30
$
16.70
INCOME/(LOSS)
FROM
INVESTMENT
OPERATIONS:
Net
investment
income
(a)
0.17
0.18
0.14
0.13
0.11
Net
realized
and
unrealized
gain
(loss)
on
investments
1.63
8.43
(3.48)
(0.39)
0.91
Total
Income/(Loss)
from
Investment
Operations
1.80
8.61
(3.34)
(0.26)
1.02
DIVIDENDS
AND
DISTRIBUTIONS
TO
SHAREHOLDERS:
Distributions
from
net
investment
income
(0.17)
(0.14)
(0.12)
(0.08)
(0.06)
Distributions
from
net
realized
gain
on
investments
(4.86)
–
–
(1.81)
(2.36)
Total
Dividends
and
Distributions
to
Shareholders
(5.03)
(0.14)
(0.12)
(1.89)
(2.42)
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
$
14.93
$
18.16
$
9.69
$
13.15
$
15.30
Total
Return
9.45%
89.19%
(25.72)%
(0.68)%
5.96%
RATIOS
AND
SUPPLEMENTAL
DATA:
Net
assets,
end
of
year
(in
000s)
$
69,206
$
63,407
$
27,890
$
34,161
$
37,788
RATIOS
TO
AVERAGE
NET
ASSETS:
Net
investment
income
0.96%
1.31%
1.05%
0.84%
0.67%
Net
expenses
1.00%
1.00%
1.00%
1.00%
1.00%
Gross
expenses
1.00%
1.00%
1.00%
1.00%
1.00%
Portfolio
turnover
rate
116%
121%
127%
147%
117%
footer
(a)
Calculated
based
on
average
shares
outstanding
during
each
year.
(b)
Less
than
$0.005
per
share.
Notes
to
Financial
Statements
March
31,
2022
24
www.cornercapfunds.com
1.
ORGANIZATION
The
CornerCap
Group
of
Funds
was
organized
on
January
6,
1986
as
a
Massachusetts
Business
Trust
(the
“Trust”)
and
is
registered
under
the
Investment
Company
Act
of
1940
as
a
diversified
open-end
management
investment
company.
The
Trust
currently
consists
of
the
CornerCap
Small-Cap
Value
Fund
(the
“Fund”).
The
Fund
currently
offers
Investor
Shares
and
Institutional
Shares.
The
Fund’s
investment
objective
is
long-term
capital
appreciation
with
a
secondary
objective
of
generating
income
from
dividends
or
interest
on
securities.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
Fund
is
an
investment
company
and
follows
accounting
and
reporting
guidance
under
Financial
Accounting
Standards
Board
(“FASB”)
Accounting
Standards
Codification
(“ASC”)
Topic
946,
“Financial
Services
–
Investment
Companies”.
The
following
is
a
summary
of
significant
accounting
policies
consistently
followed
by
the
Fund.
These
policies
are
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“GAAP”).
Accounting
Estimates
–
In
preparing
financial
statements
in
conformity
with
GAAP,
management
makes
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
and
disclosure
for
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements,
as
well
as
the
reported
amounts
of
revenues
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
Security
Valuation
–
Portfolio
securities
including
common
stocks
that
are
listed
on
national
securities
exchanges
or
the
NASDAQ
National
Market
System
are
valued
at
the
last
sale
price
or
official
close
as
of
4:00
p.m.
Eastern
time
or,
in
the
absence
of
recorded
sales,
at
the
closing
bid
price
on
such
exchanges
or
such
system.
Based
on
obtaining
active
market
quotes,
common
stocks
are
classified
as
Level
1
of
the
fair
value
hierarchy.
Unlisted
securities
that
are
not
included
on
such
exchanges
or
systems
are
valued
at
the
quoted
bid
prices
on
the
over‐the
counter
market.
Shares
of
a
registered
investment
company,
including
money
market
funds,
that
are
not
traded
on
an
exchange
are
valued
at
that
investment
company’s
net
asset
value
per
share
and
are
classified
as
Level
1
within
the
fair
value
hierarchy.
Securities
and
other
assets
for
which
market
quotations
are
not
readily
available
are
valued
at
fair
value
as
determined
in
good
faith
by
the
Adviser
under
procedures
established
by
and
under
the
general
supervision
and
responsibility
of
the
Fund’s
Board
of
Trustees
and
will
be
classified
as
Level
2
or
3
within
the
fair
value
hierarchy,
depending
on
the
inputs
used.
Security
Transactions,
Investment
Income
and
Other
–
Security
transactions
are
recorded
on
the
trade
date.
Realized
gains
and
losses
on
sales
of
investments
are
calculated
on
the
identified
cost
basis.
Withholding
taxes
on
foreign
dividends
have
been
provided
in
accordance
with
the
Fund’s
understanding
of
the
applicable
country’s
tax
rules
and
rates.
Discounts
and
premiums
on
securities
purchased
are
amortized
using
the
effective
interest
method.
In
the
event
of
a
security
in
default,
a
portion
of
interest
receivable
that
was
once
recognized
as
interest
income
is
written
off
and
treated
as
a
reduction
of
interest
income.
Notes
to
Financial
Statements
March
31,
2022
Annual
Report
I
March
31,
2022
25
REITs
–
The
Fund
has
made
certain
investments
in
real
estate
investment
trusts
(“REITs”)
which
pay
dividends
to
their
shareholders
based
upon
funds
available
from
operations.
It
is
quite
common
for
these
dividends
to
exceed
the
REIT’s
taxable
earnings
and
profits
resulting
in
the
excess
portion
of
such
dividends
being
designated
as
a
return
of
capital.
The
Fund
may
include
the
gross
dividends
from
such
REITs
in
income
or
may
utilize
estimates
of
any
potential
REIT
dividend
reclassifications
in
the
Fund’s
annual
distributions
to
shareholders
and,
accordingly,
a
portion
of
the
Fund’s
distributions
may
be
designated
as
a
return
of
capital,
require
reclassification,
or
be
under
distributed
on
an
excise
basis
and
subject
to
excise
tax.
Any
reclassifications
are
treated
as
permanent
book
to
tax
differences
and
are
reclassified
within
the
components
of
net
assets
on
the
Statement
of
Assets
and
Liabilities,
rather
than
reclassifying
such
amounts
on
the
Statements
of
Operations.
Federal
Income
Taxes
–
For
Federal
income
tax
purposes,
the
Fund
currently
qualifies,
and
intends
to
remain
qualified,
as
a
regulated
investment
company
(“RIC”)
under
the
provisions
of
Subchapter
M
of
the
Internal
Revenue
Code
of
1986
(“Code”),
as
amended,
by
complying
with
the
requirements
applicable
to
RICs
and
by
distributing
their
investment
company
taxable
net
income
including
any
excess
realized
gain
which
has
not
been
offset
by
capital
loss
carryforwards,
if
any,
to
their
shareholders.
Accordingly,
no
provision
for
federal
income
or
excise
taxes
has
been
made.
As
of
and
during
the
year
ended
March
31,
2022,
the
Fund
did
not
have
a
liability
for
any
unrecognized
tax
benefits.
The
Fund
files
U.S.
federal,
state,
and
local
tax
returns
as
required.
The
Fund’s
tax
returns
are
subject
to
examination
by
the
relevant
tax
authorities
until
expiration
of
the
applicable
statute
of
limitations,
which
is
generally
three
years
after
the
filing
of
the
tax
return
but
which
can
be
extended
to
six
years
in
certain
circumstances.
The
Fund
recognizes
interest
and
penalties,
if
any,
related
to
unrecognized
tax
benefits
as
income
tax
expense
in
the
Statement
of
Operations.
During
the
year,
the
Fund
did
not
incur
any
interest
or
penalties.
Distributions
to
Shareholders
–
Distributions
from
net
investment
income
and
distributions
of
net
realized
capital
gains,
if
any,
will
be
declared
and
paid
at
least
annually.
Income
and
capital
gains
distributions
are
determined
in
accordance
with
income
tax
regulations,
which
may
differ
from
GAAP.
Distributions
to
shareholders
are
recorded
on
the
ex-dividend
date.
Income
and
Expense
Allocation
–
The
Trust
accounts
separately
for
the
assets,
liabilities
and
operations
of
the
Fund.
Expenses
that
are
directly
attributable
to
more
than
one
investment
portfolio
are
allocated
among
the
respective
Funds
in
an
equitable
manner.
CornerCap
Small-Cap
Value
Fund’s
class
specific
expenses
are
charged
to
the
operations
of
that
class
of
shares.
Income
and
expenses
(other
than
expenses
attributable
to
a
specific
class)
and
realized
and
unrealized
gains
or
losses
on
investments
are
allocated
to
each
class
of
shares
based
on
the
class’
respective
net
assets
to
the
total
net
assets
of
the
Fund.
Fair
Value
Measurements
–
A
three-tier
hierarchy
has
been
established
to
classify
fair
value
measurements
for
disclosure
purposes.
Inputs
refer
broadly
to
the
assumptions
that
market
participants
would
use
in
pricing
the
asset
or
liability,
including
assumptions
about
risk.
Inputs
may
be
observable
or
unobservable.
Observable
inputs
reflect
the
assumptions
market
participants
would
use
in
pricing
the
asset
or
liability
that
are
developed
based
on
market
data
obtained
from
sources
independent
of
the
reporting
entity.
Unobservable
inputs
reflect
the
reporting
entity’s
own
assumptions
about
the
assumptions
market
participants
would
use
in
pricing
the
asset
or
liability
that
are
developed
based
on
the
best
information
available.
Notes
to
Financial
Statements
March
31,
2022
26
www.cornercapfunds.com
Various
inputs
are
used
in
determining
the
value
of
each
Fund’s
investments
as
of
the
reporting
period
end.
When
inputs
used
fall
into
different
levels
of
the
fair
value
hierarchy,
the
level
in
the
hierarchy
within
which
the
fair
value
measurement
falls
in
its
entirety,
is
determined
based
on
the
lowest
level
input
that
is
significant
to
the
fair
value
measurement
in
its
entirety.
The
designated
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
these
investments.
These
inputs
are
categorized
in
the
following
hierarchy
under
applicable
financial
accounting
standards:
Level
1
–
Unadjusted
quoted
prices
in
active
markets
for
identical
investments,
unrestricted
assets
or
liabilities
that
a
Fund
has
the
ability
to
access
at
the
measurement
date;
Level
2
–
Quoted
prices
which
are
not
active,
quoted
prices
for
similar
assets
or
liabilities
in
active
markets
or
inputs
other
than
quoted
prices
that
are
observable
(either
directly
or
indirectly)
for
substantially
the
full
term
of
the
asset
or
liability;
and
Level
3
–
Significant
unobservable
prices
or
inputs
(including
each
Fund’s
own
assumptions
in
determining
the
fair
value
of
investments)
where
there
is
little
or
no
market
activity
for
the
asset
or
liability
at
the
measurement
date.
The
following
is
a
summary
of
investments
based
on
the
inputs
used
to
value
the
Fund’s
investments
as
of
March
31,
2022:
For
the
year
ended
March
31,
2022
,
the
Fund
did
not
have
significant
unobservable
inputs
(Level
3)
used
in
determining
fair
value
of
any
investments.
Therefore,
a
reconciliation
of
assets
in
which
significant
unobservable
inputs
(Level
3)
were
used
in
determining
fair
value
is
not
applicable.
The
Fund
did
not
hold
any
derivative
instruments
at
any
time
during
the
period
.
3.
SHARES
OF
BENEFICIAL
INTEREST
On
March
31,
2022
,
there
was
an
unlimited
number
of
no
par-value
shares
of
beneficial
interest
authorized
for
the
Fund.
Subject
to
certain
exceptions,
the
Fund
charges
a
1%
redemption
fee,
calculated
as
a
percentage
of
the
amount
redeemed,
on
redemptions
(sales
or
exchanges)
made
within
sixty
days
of
initial
purchase
of
shares
of
the
Fund.
The
redemption
fees
charged
during
the
period
are
disclosed
on
the
Statements
of
Changes
in
Net
Assets.
Transactions
in
shares
of
beneficial
interest
were
as
follows:
Valuation
Inputs
Investments
at
Value
*
Level
1
Level
2
Level
3
Total
Common
Stocks
$
148,821,115
$
–
$
–
$
148,821,115
Total
$
148,821,115
$
–
$
–
$
148,821,115
*
See
Schedule
of
Investments
for
industry
classification
Notes
to
Financial
Statements
March
31,
2022
Annual
Report
I
March
31,
2022
27
4.
FEDERAL
TAX
INFORMATION
The
character
of
distributions
made
during
the
year
from
net
investment
income
or
net
realized
gains
may
differ
from
its
ultimate
characterization
for
federal
income
tax
purposes.
Also,
due
to
the
timing
of
dividend
distributions,
the
fiscal
year
in
which
amounts
are
distributed
may
differ
from
the
fiscal
year
in
which
the
income
or
realized
gain
was
recorded
by
the
Fund.
Distributions
from
net
investment
income
and
distributions
of
net
realized
capital
gains,
if
any,
will
be
declared
and
paid
at
least
annually.
The
tax
character
of
distributions
paid
for
the
years
ended
March
31,
2022
and
March
31,
2021
were
as
follows:
For
the
year
ended
March
31,
2022
,
the
Fund
recorded
the
following
reclassifications
to
the
accounts
listed
below.
The
reclassifications
were
primarily
as
a
result
of
equalization
utilized
for
tax
purposes
to
meet
distribution
requirements.
As
of
March
31,
2022
,
the
components
of
distributable
earnings
on
a
tax
basis
were
as
follows:
Year
Ended
March
31,
2022
Year
Ended
March
31,
2021
Shares
Amount
Shares
Amount
Shares
Sold
Investor
Shares
397,521
6,898,459
1,282,119
15,528,843
Institutional
Shares
1,028,194
18,312,919
1,325,194
16,883,046
Shares
Issued
in
Reinvestment
of
Dividends
Investor
Shares
1,528,864
23,162,296
43,844
646,694
Institutional
Shares
1,171,789
17,787,764
35,048
517,654
Total
4,126,368
66,161,438
2,686,205
33,576,237
Less
Shares
Redeemed
Investor
Shares
(2,295,513)
(40,361,324)
(1,693,071)
(24,498,915)
Institutional
Shares
(1,054,424)
(18,063,249)
(746,425)
(11,106,624)
Net
increase
(decrease)
776,431
$
7,736,865
246,709
$
(2,029,302)
Distributions
Paid
From:
2022
2021
Ordinary
Income
$
25,828,099
$
1,174,679
Long-term
capital
gains
15,651,791
-
Total
$
4
1,479,890
$
1,17
4,679
Distributable
Earning
Paid-in-Capital
$
(2,750,000)
$
2,750,000
Undistributed
ordinary
income
$
3,042,856
Undistributed
long-term
gain
7,275,118
Net
unrealized
appreciation
on
investments
9,798,063
Total
$
20,116,037
Notes
to
Financial
Statements
March
31,
2022
28
www.cornercapfunds.com
The
difference
between
components
of
distributable
earnings
on
a
tax
basis
and
the
amounts
reflected
in
the
Statement
of
Assets
and
Liabilities
are
primarily
due
to
wash
sales,
real
estate
investment
trust
investments
and
return
of
capital
on
equity
securities.
The
amount
of
net
unrealized
appreciation
(depreciation)
and
the
cost
of
investment
securities
for
tax
purposes,
including
short-term
securities
as
of
March
31,
2022
,
were
as
follows:
5.
INVESTMENT
ADVISORY
AND
OTHER
RELATED
PARTY
TRANSACTIONS
A.
The
Fund
has
an
Investment
Advisory
Agreement
with
CornerCap
Investment
Counsel
(the
“Adviser”),
pursuant
to
which
the
Adviser
receives
an
Advisory
Fee
from
the
Fund,
computed
daily
and
payable
monthly,
at
an
annual
rate
of
0.90%
of
the
Fund’s
average
daily
net
assets.
Under
the
terms
of
each
Advisory
Agreement,
the
Adviser
manages
the
Fund’s
investments
subject
to
the
approval
of
the
Board
of
Trustees.
The
amount
of
expenses
paid
to
the
Adviser
are
reflected
in
the
Statements
of
Operations
and
the
amount
of
current
liabilities
are
reflected
in
the
Statements
of
Assets
and
Liabilities.
In
addition,
the
Fund
and
the
Adviser
have
entered
into
an
Operating
Services
Agreement
whereby
the
Adviser
receives
an
Operating
Services
Fee,
computed
daily
and
payable
monthly,
at
an
annual
rate
of
0.40%
and
0.10%
of
the
average
daily
net
assets
of
the
Fund
Investor
and
Institutional
Shares,
respectively.
The
amounts
of
expenses
paid
to
the
Adviser
as
Operating
Services
Fees
are
reflected
in
the
Statements
of
Operations
and
the
amount
of
current
liabilities
are
reflected
in
the
Statements
of
Assets
and
Liabilities.
The
Adviser
has
contractually
agreed
to
waive
fees
and
reimburse
the
Fund
so
as
to
limit
the
Fund’s
“Total
Annual
Fund
Operating
Expenses”
(exclusive
of
all
taxes,
interest,
brokerage
fees
and
commissions,
acquired
fund
fees
and
expenses,
and
extraordinary
expenses)
as
reflected
in
the
following
table:
The
contractual
agreement
cannot
be
terminated
prior
to
August
1,
2022,
without
the
Board
of
Trustees’
approval.
For
the
period
ended
March
31,
2022,
the
Adviser
did
not
waive
fees
or
reimburse
expenses
for
the
Fund.
Gross
unrealized
appreciation
(excess
of
value
over
tax
cost)
$
18,328,455
Gross
unrealized
depreciation
(excess
of
tax
cost
over
value)
(8,530,392)
Net
unrealized
appreciation
$
9,798,063
Cost
of
investments
for
income
tax
purposes
$
139,023,052
Total
Annual
Fund
Operating
Expense
Limitation
Investor
Shares
1.30%
Notes
to
Financial
Statements
March
31,
2022
Annual
Report
I
March
31,
2022
29
B.
The
Fund
and
the
Adviser
have
entered
into
the
following
agreements
whereby
the
Adviser
pays
any
associated
fees
from
the
Operating
Services
Fees
it
receives
from
the
Fund
to
fund
operational
service
providers
pursuant
to
the
following
agreements:
1)
Atlantic
Fund
Administration,
LLC,
a
wholly
owned
subsidiary
of
Apex
US
Holdings,
LLC
(d/b/a
Apex
Fund
Services)
(“Apex”)
provides
fund
accounting,
fund
administration
services
and
transfer
agency
services
to
the
Fund.
Pursuant
to
an
Apex
services
agreement,
the
Adviser
pays
Apex
customary
fees
for
its
services
from
the
Operating
Services
Fee
it
receives
from
the
Fund.
Apex
also
provides
certain
shareholder
report
production,
and
EDGAR
conversion
and
filing
services;
2)
Foreside
Fund
Services,
LLC
serves
as
the
Fund’s
distributor
(the
“Distributor”).
The
Distributor
is
not
affiliated
with
the
Adviser
or
Apex
or
their
affiliates.
In
addition,
the
Adviser
pays
all
other
operating
expenses
of
the
Fund,
as
outlined
in
the
Operating
Services
Agreement.
Certain
trustees
and
officers
of
the
Fund
are
also
directors
and
officers
of
the
Adviser.
6.
PURCHASES
AND
SALES
OF
SECURITIES
Investment
transactions
for
the
year
ended
March
31,
2022
,
excluding
short-term
investments,
were
as
follows:
7.
BENEFICIAL
OWNERSHIP
The
beneficial
ownership,
either
directly
or
indirectly,
of
more
than
25%
of
the
voting
securities
of
a
fund
creates
a
presumption
of
control
of
the
fund,
under
section
2(a)(9)
of
the
Investment
Company
Act
of
1940.
As
of
March
31,
2022
,
Charles
Schwab
&
Co.
held
approximately
73.16%
of
the
Fund.
The
shares
are
held
under
omnibus
accounts
(whereby
the
transactions
of
two
or
more
shareholders
are
combined
and
carried
in
the
name
of
the
originating
broker
rather
than
designated
separately).
8.
INDEMNIFICATIONS
Under
the
Trust’s
organizational
documents,
its
officers
and
Trustees
are
indemnified
against
certain
liability
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust
enters
into
contracts
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.
Purchases
Sales
$
188,411,495
$
223,104,419
Notes
to
Financial
Statements
March
31,
2022
30
www.cornercapfunds.com
9.
SUBSEQUENT
EVENTS
In
preparing
these
financial
statements,
management
has
evaluated
events
and
transactions
for
potential
recognition
or
disclosure
through
the
date
the
financial
statements
were
issued.
There
were
no
events
or
transactions
that
occurred
during
the
period
subsequent
to
the
end
of
the
current
fiscal
period
that
materially
impacted
the
amounts
or
disclosures
in
the
Fund's
financial
statements.
Report
of
Independent
Registered
Public
Accounting
Firm
Annual
Report
I
March
31,
2022
31
To
the
Shareholders
and
Board
of
Trustees
of
CornerCap
Group
of
Funds
Opinion
on
the
Financial
Statements
We
have
audited
the
accompanying
statement
of
assets
and
liabilities,
including
the
schedule
of
investments,
of
CornerCap
Group
of
Funds,
comprising
CornerCap
Small-Cap
Value
Fund
(the
“Fund”)
as
of
March
31,
2022,
the
related
statement
of
operations
for
the
year
then
ended,
the
statement
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
including
the
related
notes,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
then
ended
(collectively
referred
to
as
the
“financial
statements”).
In
our
opinion,
the
financial
statements
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
March
31
,2022,
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
and
the
financial
highlights
for
each
of
the
five
years
in
the
period
then
ended,
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(“PCAOB”)
and
are
required
to
be
independent
with
respect
to
the
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,
2022,
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
Fund’s
auditor
since
2004.
COHEN
&
COMPANY,
LTD.
Cleveland,
Ohio
May
31,
2022
Additional
Information
(Unaudited)
March
31,
2022
32
www.cornercapfunds.com
1.
PROXY
VOTING
POLICY
A
copy
of
the
policies
and
procedures
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
is
available
without
charge,
upon
request,
by
calling
the
Fund
toll‐free
at
(888)
813‐8637
or
on
the
Securities
and
Exchange
Commission’s
(SEC)
website
at
http://www.sec.gov.
Information
regarding
how
the
Fund
voted
proxies
relating
to
portfolio
securities
during
the
most
recent
12‐month
period
ended
June
30
is
also
available
without
charge,
upon
request,
by
calling
the
Fund
toll‐free
at
(888)
813‐8637
and
on
the
SEC’s
website
at
http://www.sec.gov.
2.
AVAILABILITY
OF
QUARTERLY
PORTFOLIO
SCHEDULE
The
Fund
files
its
complete
schedule
of
positions
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
on
Form
N‐PORT.
Forms
N-PORT
are
available
free
of
charge
on
the
SEC’s
website
at
www.sec.gov
or
may
be
reviewed
and
copied
at
the
SEC’s
Public
Reference
Room
in
Washington,
D.C.,
and
information
on
the
operation
of
the
Public
Reference
Room
may
be
obtained
by
calling
1‐800‐SEC‐0330.
3.
COMPENSATION
OF
TRUSTEES
No
interested
Trustee,
officer,
or
employee
of
the
Fund
receives
any
compensation
from
the
Fund
or
Adviser
for
serving
as
an
officer
or
Trustee
of
the
Fund.
Each
Independent
Trustee
receives
an
annual
retainer
of
$8,000,
$5,000
for
each
regular
meeting
or
special
in-person
meeting
of
the
Trustees,
and
$2,000
for
each
special
meeting
attended
by
telephone;
members
of
the
Audit
Committee
are
paid
$1,600
per
Audit
Committee
meeting,
and
the
Audit
Committee
Chairman
is
paid
$3,200
per
Audit
Committee
meeting.
The
Audit
Committee
will
normally
meet
twice
a
year.
Independent
Trustee
and
Audit
Committee
compensation
is
paid
by
the
Adviser.
4.
TAX
DESIGNATIONS
For
federal
income
tax
purposes,
dividends
from
short-term
capital
gains
are
classified
as
ordinary
income.
The
Fund
designates
the
following
for
federal
income
tax
purposes
for
distributions
made
during
the
calendar
year
ended
December
31,
2021
:
Pursuant
to
Section
852(b)(3)
of
the
Internal
Revenue
Code,
the
Fund
had
$17,196,791
of
long
term
gain
distributions
for
the
fiscal
year
ended
March
31,
2022
which
includes
$1,545,000
of
equalization
that
was
classified
as
long
term.
5.
TRUSTEES
AND
OFFICERS
The
business
affairs
of
the
Fund
is
managed
under
the
direction
of
the
Fund’s
Board
of
Trustees
in
accordance
with
the
laws
of
the
State
of
Massachusetts.
Information
pertaining
to
the
Trustees
and
Officers
of
the
Fund
is
set
forth
below.
Trustees
who
are
not
deemed
to
be
“interested
persons”
of
the
Trust
as
defined
in
the
Investment
Company
Act
of
1940,
Dividends
Received
Deduction
10.89
%
Qualified
Dividend
Income
11.04
%
Short
Term
Dividends
Exempt
from
U.S.
tax
95.89
%
Additional
Information
(Unaudited)
March
31,
2022
Annual
Report
I
March
31,
2022
33
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
Fund’s
Statement
of
Additional
Information
includes
additional
information
about
the
trustees
and
is
available
upon
request
by
calling
toll-free
1-888-
813-8637.
INTERESTED
TRUSTEES
Name,
Address
and
Year
of
Birth
Position
with
the
Trust,
Term
of
Office
and
Tenure
Number
of
Funds
in
Complex
Overseen
by
Trustee
Principal
Occupation(s)
during
past
5
years
Other
Trusteeships/Directorships
by
Trustee
Thomas
E.
Quinn
The
Peachtree,
Suite
1700
1355
Peachtree
St.
NE
Atlanta,
GA
30309
Born:
1945
Trustee,
Chairman
of
the
Board,
President,
Chief
Financial
Officer,
and
Treasurer
since
1992
1
Chief
Financial
Officer,
CornerCap
Investment
Counsel
(since
1989);
Chief
Executive
Officer,
CornerCap
Investment
Counsel
(1989-2020);
Vice-Chairman,
Church
Investment
Group
(non-profit)
(2013-present).
None
INDEPENDENT
TRUSTEES
Name,
Address*
and
Year
of
Birth
Position
with
the
Trust,
Term
of
Office
and
Tenure
Number
of
Funds
in
Complex
Overseen
by
Trustee
Principal
Occupation(s)
during
past
5
years
Other
Trusteeships/Directorships
by
Trustee
Richard
L.
Boger
Born:
1946
Trustee
since
1992
1
President
&
CEO,
Lex-Tek
International,
Inc.
(a
financial
services
and
software
consulting
company),
(1991-present);
Managing
Trustee,
Boger-Owen
FNDN
(2012-present);
Business
Manager,
Owen
Holdings,
LLLP
(2003-2013);
Heathland
Holdings,
LLP,
and
General
Partner,
Shawnee
Meadow
Holdings,
LLLP
(real
estate
and
related
companies)
(2004-present).
Director,
Gray
Television,
Inc.
since
1991.
Laurin
M.
McSwain
Born:
1951
Trustee
since
1994
1
Attorney,
Lefkoff,
Duncan,
Grimes,
McSwain
&
Hass,
(2003-present).
None
Leslie
W.
Gates
Born:
1955
Trustee
since
2006
1
Retired,
2005.
Partner,
Williams
Benator
&
Libby,
LLP
(CPA
firm)
(1989-2004).
None
G.
Harry
Durity
Born:
1946
Trustee
1992-2004,
since
2010
1
Senior
Advisor,
Consultant,
New
Mountain
Capital,
LLC
(asset
management
company)
(2005-present);
Director,
Overland
Solutions,
Inc.
(audit
services)
(2009-2014);
Director,
Alexander
Mann
Solutions
(Private
company)
(2014-present).
Former
Director,
National
Medical
Health
Card;
Former
Director,
WebSite
Pros,
Inc.
*All
Independent
Trustees
can
be
contacted
via
the
Fund
at:
P.O.
Box
588,
Portland,
ME
04112.
Additional
Information
(Unaudited)
March
31,
2022
34
www.cornercapfunds.com
OFFICERS
Name,
Address
and
Year
of
Birth
Position
with
the
Trust,
Term
of
Office
and
Tenure
Number
of
Funds
in
Complex
Overseen
by
Trustee
Principal
Occupation(s)
during
past
5
years
Other
Trusteeships/Directorships
by
Trustee
Richard
T.
Bean
The
Peachtree,
Suite
1700
1355
Peachtree
St.
NE
Atlanta,
GA
30309
Born:
1962
Vice
President
of
the
Fund
since
1996
N/A
Portfolio
Manager
(since
1996)
and
Chief
Investment
Officer
(since
2020),
CornerCap
Investment
Counsel.
N/A
John
A.
Hackney
The
Peachtree,
Suite
1700
1355
Peachtree
St.
NE
Atlanta,
GA
30309
Born:
1966
Chief
Compliance
Officer
since
2004
and
Secretary
of
the
Fund
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
Fund
since
2019
N/A
Chief
Executive
Officer,
CornerCap
Investment
Counsel
(since
2020);
Chief
Investment
Officer,
CornerCap
Investment
Counsel
(2013-2020).
N/A
www.cornercapfunds.com
888-813-8637
DISTRIBUTOR
Foreside
Fund
Services,
LLC
Three
Canal
Plaza,
Suite
100
Portland,
Maine
04101
www.foreside.com
This
report
is
submitted
for
the
general
information
of
the
shareholders
of
the
Fund.
It
is
not
authorized
for
distribution
to
prospective
investors
unless
preceded
or
accompanied
by
an
effective
prospectus,
which
includes
information
regarding
the
Fund’s
risks,
objectives,
fees
and
expenses,
experience
of
their
management
and
other
information.
232-ANR-0322
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 $13,000 in 2021 and $13,000 in 2022.
(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 2021 and $0 in 2022.
(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 $2,100 in 2021 and $3,000 in 2022. 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 2021 and $0 in 2022.
(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 2021 and $0 in 2022. There were no fees billed in either of the Reporting Periods for non-audit services rendered by the principal accountant to the Registrant’s investment adviser or any Affiliate.
(h) Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. INVESTMENTS.
(a) Included as part of the report to shareholders under Item 1.
(b) Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Note applicable.
ITEM 11. CONTROLS AND PROCEDURES
(a) The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as of a date within 90 days of the filing date of this report.
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in
Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
ITEM 12. DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.
ITEM 13. EXHIBITS.
(a)(3) Not applicable.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Registrant CornerCap Group of Funds
By: | /s/ Thomas E. Quinn | |
Thomas E. Quinn | ||
President | ||
Date: | May 25, 2022 |
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 25, 2022 |