350 Jericho Turnpike, Suite 206 Jericho, New York
|
11753
|
(Address of principal executive offices)
|
(Zip code)
|
ITEM 1.
|
REPORTS TO STOCKHOLDERS.
|
Portfolio Summary
|
1
|
Summary Schedule of Investments
|
2
|
Statement of Assets and Liabilities
|
5
|
Statement of Operations
|
6
|
Statement of Changes in Net Assets
|
7
|
Financial Highlights
|
8
|
Notes to Financial Statements
|
9
|
Report of Independent Registered Public Accounting Firm
|
14
|
Tax Information
|
15
|
Additional Information Regarding the Fund’s Trustees and Corporate Officers
|
16
|
Description of Dividend Reinvestment Plan
|
19
|
Proxy Voting and Portfolio Holdings Information
|
21
|
Privacy Policy Notice
|
22
|
Summary of General Information
|
25
|
Shareholder Information
|
25
|
Cornerstone Progressive Return Fund
Portfolio Summary – as of December 31, 2011 (unaudited)
|
Sector
|
Percent of
Net Assets
|
Closed-End Funds
|
92.8
|
Information Technology
|
1.2
|
Energy
|
1.1
|
Health Care
|
0.8
|
Financials
|
0.6
|
Industrials
|
0.6
|
Consumer Staples
|
0.5
|
Consumer Discretionary
|
0.4
|
Materials
|
0.1
|
Utilities
|
0.1
|
Other
|
1.8
|
|
Holding
|
Sector
|
Percent of
Net Assets
|
1.
|
Eaton Vance Tax-Managed Global Diversified Equity Income Fund
|
Closed-End Funds
|
4.9
|
2.
|
Eaton Vance Risk-Managed Diversified Equity Income Fund
|
Closed-End Funds
|
4.8
|
3.
|
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund
|
Closed-End Funds
|
4.8
|
4.
|
Eaton Vance Tax-Managed Diversified Equity Income Fund
|
Closed-End Funds
|
4.6
|
5.
|
Eaton Vance Tax-Managed Buy-Write Opportunities Fund
|
Closed-End Funds
|
4.0
|
6.
|
BlackRock Enhanced Capital & Income Fund, Inc.
|
Closed-End Funds
|
3.2
|
7.
|
Eaton Vance Enhanced Equity Income Fund II
|
Closed-End Funds
|
3.2
|
8.
|
Morgan Stanley China A Share Fund, Inc.
|
Closed-End Funds
|
3.1
|
9.
|
BlackRock Enhanced Equity Dividend Trust
|
Closed-End Funds
|
3.0
|
10.
|
Eaton Vance Enhanced Equity Income Fund
|
Closed-End Funds
|
2.7
|
Cornerstone Progressive Return Fund
Summary Schedule of Investments – December 31, 2011
|
Description
|
No. of
Shares
|
Value
|
||||||
EQUITY SECURITIES – 98.16%
|
||||||||
CLOSED-END FUNDS – 92.81%
|
||||||||
CONVERTIBLE SECURITIES – 3.33%
|
||||||||
Advent Claymore Convertible Securities and Income Fund
|
37,564 | $ | 553,318 | |||||
Advent/Claymore Global Convertible Securities & Income Fund
|
126,327 | 795,860 | ||||||
AGIC Equity & Convertible Income Fund
|
56,110 | 875,316 | ||||||
Other Convertible Securities (a)
|
383,792 | |||||||
2,608,286 | ||||||||
CORE - 1.33%
|
||||||||
BlackRock Equity Dividend Trust
|
49,444 | 447,963 | ||||||
Source Capital, Inc.
|
10,000 | 469,800 | ||||||
Other Core (a)
|
128,371 | |||||||
1,046,134 | ||||||||
CORPORATE DEBT FUNDS INVESTMENT GRADE-RATED – 3.67%
|
||||||||
Federated Enhanced Treasury Income Fund
|
59,077 | 847,755 | ||||||
Western Asset/Claymore Inflation-Linked Opportunities & Income Fund
|
122,194 | 1,540,866 | ||||||
Western Asset/Claymore Inflation-Linked Securities & Income Fund
|
38,779 | 490,167 | ||||||
Other Corporate Debt Funds Investment Grade-Rated (a)
|
25 | |||||||
2,878,813 | ||||||||
DEVELOPED MARKET - 1.49%
|
||||||||
Japan Smaller Capitalization Fund, Inc.
|
162,524 | 1,166,922 |
Description
|
No. of
Shares
|
Value
|
EMERGING MARKETS – 0.97%
|
||||||||
First Trust/Aberdeen Emerging Opportunity Fund
|
25,481 | $ | 454,071 | |||||
Other Emerging Markets (a)
|
307,373 | |||||||
761,444 | ||||||||
EMERGING MARKETS DEBT – 0.08%
|
||||||||
Total Emerging Markets Debt (a)
|
64,625 | |||||||
FLEXIBLE INCOME – 4.89%
|
||||||||
Putnam Master Intermediate Income Trust
|
100,567 | 510,880 | ||||||
Putnam Premier Income Trust
|
207,801 | 1,078,487 | ||||||
Zweig Total Return Fund, Inc. (The)
|
648,533 | 1,965,055 | ||||||
Other Flexible Income (a)
|
279,638 | |||||||
3,834,060 | ||||||||
GENERAL MUNICIPAL LEVERAGED – 1.01%
|
||||||||
Eaton Vance Tax-Advantaged Bond and Option Strategies Fund
|
48,070 | 795,559 | ||||||
GLOBAL – 4.45%
|
||||||||
Clough Global Equity Fund
|
44,069 | 530,150 | ||||||
Clough Global Opportunities Fund
|
45,014 | 475,798 | ||||||
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund
|
59,200 | 1,006,400 | ||||||
Other Global (a)
|
1,474,036 | |||||||
3,486,384 | ||||||||
GLOBAL INCOME – 0.43%
|
||||||||
Other Global Income (a)
|
336,502 |
Cornerstone Progressive Return Fund
Summary Schedule of Investments – December 31, 2011 (continued)
|
Description
|
No. of
Shares
|
Value
|
HIGH CURRENT YIELD (LEVERAGED) – 0.44%
|
||||||||
Other High Current Yield (Leveraged) (a)
|
$ | 348,382 | ||||||
INCOME & PREFERRED STOCK – 1.12%
|
||||||||
Calamos Strategic Total Return Fund
|
89,438 | 746,807 | ||||||
Other Income & Preferred Stock (a)
|
135,174 | |||||||
881,981 | ||||||||
LOAN PARTICIPATION – 11.48%
|
||||||||
Apollo Senior Floating Rate Fund, Inc.
|
32,771 | 524,664 | ||||||
BlackRock Floating Rate Income Strategies Fund, Inc.
|
47,461 | 634,079 | ||||||
BlackRock Floating Rate Income Trust
|
65,790 | 886,191 | ||||||
Eaton Vance Floating-Rate Income Trust
|
108,368 | 1,542,077 | ||||||
Eaton Vance Senior Floating-Rate Trust
|
124,894 | 1,795,976 | ||||||
Eaton Vance Senior Income Trust
|
98,935 | 646,046 | ||||||
Invesco Van Kampen Dynamic Credit Opportunities Fund
|
110,514 | 1,168,133 | ||||||
Invesco Van Kampen Senior Income Trust
|
254,017 | 1,087,193 | ||||||
Other Loan Participation (a)
|
722,705 | |||||||
9,007,064 | ||||||||
OPTION ARBITRAGE/OPTIONS STRATEGIES – 50.08%
|
||||||||
BlackRock Enhanced Capital & Income Fund, Inc.
|
202,852 | 2,495,080 | ||||||
BlackRock Enhanced Equity Dividend Trust
|
332,916 | 2,353,716 |
Description
|
No. of
Shares
|
Value
|
OPTION ARBITRAGE/OPTIONS STRATEGIES – (continued)
|
||||||||
BlackRock Global Opportunities Equity Trust
|
105,197 | $ | 1,389,652 | |||||
BlackRock International Growth and Income Trust
|
270,543 | 1,937,088 | ||||||
Cohen & Steers Global Income Builder, Inc.
|
84,369 | 784,632 | ||||||
Eaton Vance Enhanced Equity Income Fund
|
208,336 | 2,120,860 | ||||||
Eaton Vance Enhanced Equity Income Fund II
|
243,653 | 2,487,697 | ||||||
Eaton Vance Risk-Managed Diversified Equity Income Fund
|
361,450 | 3,777,153 | ||||||
Eaton Vance Tax-Managed Buy-Write Income Fund
|
147,258 | 1,890,793 | ||||||
Eaton Vance Tax-Managed Buy-Write Opportunities Fund
|
264,757 | 3,102,952 | ||||||
Eaton Vance Tax-Managed Diversified Equity Income Fund
|
407,200 | 3,611,864 | ||||||
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund
|
367,136 | 3,774,158 | ||||||
Eaton Vance Tax-Managed Global Diversified Equity Income Fund
|
467,796 | 3,859,317 | ||||||
Nuveen Equity Premium Advantage Fund
|
76,057 | 871,613 | ||||||
Nuveen Equity Premium and Growth Fund
|
40,216 | 485,407 | ||||||
Nuveen Equity Premium Income Fund
|
118,860 | 1,328,855 | ||||||
Nuveen Equity Premium Opportunity Fund
|
166,495 | 1,901,373 | ||||||
Other Option Arbitrage/Options Strategies (a)
|
1,110,834 | |||||||
39,283,044 |
Cornerstone Progressive Return Fund
Summary Schedule of Investments – December 31, 2011 (concluded)
|
Description
|
No. of
Shares
|
Value
|
PACIFIC EX JAPAN – 3.06%
|
||||||||
Morgan Stanley China A Share Fund, Inc.
|
123,933 | $ | 2,398,104 | |||||
REAL ESTATE – 1.96%
|
||||||||
CBRE Clarion Global Real Estate Income Fund
|
114,937 | 786,169 | ||||||
Other Real Estate (a)
|
746,788 | |||||||
1,532,957 | ||||||||
SECTOR EQUITY – 2.99%
|
||||||||
BlackRock EcoSolutions Investment Trust
|
70,379 | 550,364 | ||||||
ING Risk Managed Natural Resources Fund
|
72,416 | 825,542 | ||||||
Nuveen MLP & Strategic Equity Fund, Inc.
|
36,506 | 623,522 | ||||||
Other Sector Equity (a)
|
348,218 | |||||||
2,347,646 | ||||||||
VALUE – 0.03%
|
||||||||
Total Value (a)
|
21,032 | |||||||
TOTAL CLOSED-END FUNDS
|
72,798,939 | |||||||
CONSUMER DISCRETIONARY – 0.41%
|
||||||||
Other Consumer Discretionary (a)
|
322,938 | |||||||
CONSUMER STAPLES – 0.53%
|
||||||||
Total Consumer Staples (a)
|
418,320 | |||||||
ENERGY – 1.05%
|
||||||||
Chevron Corporation
|
5,000 | 532,000 | ||||||
Other Energy (a)
|
291,480 | |||||||
823,480 | ||||||||
FINANCIALS – 0.63%
|
||||||||
Other Financials (a)
|
494,030 | |||||||
HEALTH CARE – 0.75%
|
||||||||
Other Health Care (a)
|
587,170 |
Description
|
No. of
Shares
|
Value
|
INDUSTRIALS – 0.59%
|
||||||||
Other Industrials (a)
|
$ | 459,134 | ||||||
INFORMATION TECHNOLOGY – 1.20%
|
||||||||
International Business Machines Corporation
|
3,000 | 551,640 | ||||||
Other Information Technology (a)
|
384,750 | |||||||
936,390 | ||||||||
MATERIALS – 0.11%
|
||||||||
Total Materials (a)
|
82,336 | |||||||
UTILITIES – 0.08%
|
||||||||
Total Utilities (a)
|
66,000 | |||||||
TOTAL EQUITY SECURITIES
|
||||||||
(cost - $81,849,724)
|
76,988,737 | |||||||
SHORT-TERM INVESTMENT – 2.28%
|
||||||||
MONEY MARKET FUND – 2.28%
|
||||||||
Fidelity Institutional Money Market Government Portfolio - Class I (cost - $1,788,495)
|
1,788,495 | 1,788,495 | ||||||
TOTAL INVESTMENTS – 100.44%
|
||||||||
(cost - $83,638,219)
|
78,777,232 | |||||||
LIABILITIES IN EXCESS OF OTHER ASSETS – (0.44)%
|
(342,601 | ) | ||||||
NET ASSETS – 100.00%
|
$ | 78,434,631 |
(a)
|
Represents issuers not identified as a top 50 holding in terms of market value and issues or issuers not exceeding 1% of net assets individually or in the aggregate, respectively, as of December 31, 2011.
|
Cornerstone Progressive Return Fund
Statement of Assets and Liabilities – December 31, 2011
|
ASSETS
|
||||
Investments, at value (cost – $83,638,219)
|
$ | 78,777,232 | ||
Cash
|
80,375 | |||
Receivables:
|
||||
Investments sold
|
490,548 | |||
Dividends
|
184,450 | |||
Prepaid expenses
|
1,312 | |||
Total Assets
|
79,533,917 | |||
LIABILITIES
|
||||
Payables:
|
||||
Securities purchased
|
956,320 | |||
Investment management fees
|
66,719 | |||
Trustees’ fees
|
16,008 | |||
Fund Accounting fees
|
3,822 | |||
Other accrued expenses
|
56,417 | |||
Total Liabilities
|
1,099,286 | |||
NET ASSETS (applicable to 15,694,704 shares of common shares of beneficial interest)
|
$ | 78,434,631 | ||
NET ASSET VALUE PER SHARE ($78,434,631 ÷ 15,694,704)
|
$ | 5.00 | ||
NET ASSETS CONSISTS
|
||||
Paid-in capital
|
$ | 106,455,811 | ||
Accumulated net realized loss on investments
|
(23,160,193 | ) | ||
Net unrealized depreciation in value of investments
|
(4,860,987 | ) | ||
Net assets applicable to shares outstanding
|
$ | 78,434,631 |
Cornerstone Progressive Return Fund
Statement of Operations – for the Year Ended December 31, 2011
|
INVESTMENT INCOME
|
||||
Income:
|
||||
Dividends from investments
|
$ | 2,552,528 | ||
Expenses:
|
||||
Investment management fees
|
730,851 | |||
Trustees’ fees and expenses
|
77,031 | |||
Administration fees
|
73,103 | |||
Accounting fees
|
47,502 | |||
Legal and audit fees
|
46,340 | |||
Printing
|
27,902 | |||
Custodian fees
|
22,909 | |||
Transfer agent fees
|
16,553 | |||
Stock exchange listing fees
|
9,760 | |||
Insurance
|
4,181 | |||
Miscellaneous
|
4,512 | |||
Total Expenses
|
1,060,644 | |||
Less: Fees paid indirectly
|
(112,565 | ) | ||
Net Expenses
|
948,079 | |||
Net Investment Income
|
1,604,449 | |||
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS
|
||||
Net realized gain from investments
|
6,132,720 | |||
Capital gain distributions from regulated investment companies
|
183,780 | |||
Net change in unrealized appreciation/(depreciation) in value of investments
|
(9,533,087 | ) | ||
Net realized and unrealized loss on investments
|
(3,216,587 | ) | ||
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS
|
$ | (1,612,138 | ) |
Cornerstone Progressive Return Fund
Statement of Changes in Net Assets
|
For the Years Ended December 31,
|
||||||||
2011
|
2010
|
|||||||
INCREASE/(DECREASE) IN NET ASSETS
|
||||||||
Operations:
|
||||||||
Net investment income
|
$ | 1,604,449 | $ | 1,181,604 | ||||
Net realized gain from investments
|
6,316,500 | 10,392,546 | ||||||
Net change in unrealized appreciation/(depreciation) in value of investments
|
(9,533,087 | ) | (795,580 | ) | ||||
Net increase/(decrease) in net assets resulting from operations
|
(1,612,138 | ) | 10,778,570 | |||||
Dividends and distributions to shareholders:
|
||||||||
Net investment income
|
(7,920,949 | ) | (10,660,166 | ) | ||||
Return-of-capital
|
(8,194,697 | ) | (3,769,736 | ) | ||||
Total dividends and distributions to shareholders
|
(16,115,646 | ) | (14,429,902 | ) | ||||
Transactions in common share of beneficial interest:
|
||||||||
Proceeds from rights offering of 6,254,468 and 0 shares of newly issued common stock, respectively
|
40,591,497 | — | ||||||
Offering expenses associated with rights offering
|
(82,220 | ) | — | |||||
Proceeds from 65,407 and 27,803 shares newly issued in reinvestment of dividends and distributions, respectively
|
376,140 | 189,938 | ||||||
Net increase in net assets from capital stock transactions
|
40,885,417 | 189,938 | ||||||
Total increase/(decrease)in net assets
|
23,157,633 | (3,461,394 | ) | |||||
NET ASSETS
|
||||||||
Beginning of year
|
55,276,998 | 58,738,392 | ||||||
End of year
|
$ | 78,434,631 | $ | 55,276,998 |
Cornerstone Progressive Return Fund
Financial Highlights
|
Contained below is per share operating performance data for a share of common stock outstanding, total investment return, ratios to average net assets and other supplemental data for each period indicated. This information has been derived from information provided in the financial statements and market price data for the Fund’s shares.
|
For the Years Ended December 31,
|
For the Period
Sept. 10, 2007*
through
|
|||||||||||||||||||
2011
|
2010
|
2009
|
2008
|
Dec. 31, 2007
|
||||||||||||||||
PER SHARE OPERATING
|
||||||||||||||||||||
PERFORMANCE
|
||||||||||||||||||||
Net asset value, beginning of period
|
$ | 5.90 | $ | 6.28 | $ | 7.16 | $ | 14.10 | $ |
14.96
|
^ | |||||||||
Net investment income #
|
0.12 | 0.13 | 0.16 | 0.16 | 0.06 | |||||||||||||||
Net realized and unrealized gain/(loss) on investments
|
(0.11 | ) | 1.03 | 1.42 | (4.64 | ) | (0.35 | ) | ||||||||||||
Net increase/(decrease) in net assets resulting from operations
|
0.01 | 1.16 | 1.58 | (4.48 | ) | (0.29 | ) | |||||||||||||
Dividends and distributions to shareholders:
|
||||||||||||||||||||
Net investment income
|
(0.61 | ) | (1.14 | ) | (0.16 | ) | (0.16 | ) | (0.06 | ) | ||||||||||
Net realized capital gains
|
— | — | — | — | (0.15 | ) | ||||||||||||||
Return-of-capital
|
(0.63 | ) | (0.40 | ) | (2.30 | ) | (2.30 | ) | (0.41 | ) | ||||||||||
Total dividends and distributions to shareholders
|
(1.24 | ) | (1.54 | ) | (2.46 | ) | (2.46 | ) | (0.62 | ) | ||||||||||
Transactions in common shares of beneficial interest:
|
||||||||||||||||||||
Anti-dilutive effect due to shares issued:
|
||||||||||||||||||||
Rights offering
|
0.31 | — | — | — | 0.05 | |||||||||||||||
Reinvestment of dividends and distributions
|
0.02 | — | + | — | — | — | ||||||||||||||
Total transactions in common shares of beneficial interest
|
0.33 | — | — | — | 0.05 | |||||||||||||||
Net asset value, end of period
|
$ | 5.00 | $ | 5.90 | $ | 6.28 | $ | 7.16 | $ | 14.10 | ||||||||||
Market value, end of period
|
$ | 6.04 | $ | 7.46 | $ | 8.90 | $ | 7.10 | $ | 16.75 | ||||||||||
Total investment return (a)
|
(2.12 | )% | 4.73 | % | 65.40 | % | (47.53 | )% | 16.02 | %(b) | ||||||||||
RATIOS/SUPPLEMENTAL DATA
|
||||||||||||||||||||
Net assets, end of period (000 omitted)
|
$ | 78,435 | $ | 55,277 | $ | 58,738 | $ | 66,811 | $ | 131,628 | ||||||||||
Ratio of expenses to average net assets, net of fee waivers, if any (c)(d)
|
1.30 | % | 1.47 | % | 1.39 | % | 1.25 | % | 1.29 | %(e) | ||||||||||
Ratio of expenses to average net assets, excluding fee waivers, if any (d)(f)
|
1.45 | % | 1.61 | % | 1.54 | % | 1.32 | % | 1.42 | %(e) | ||||||||||
Ratio of expenses to average net assets, net of fee waivers, if any (d)(f)
|
1.45 | % | 1.61 | % | 1.54 | % | 1.32 | % | 1.42 | %(e) | ||||||||||
Ratio of net investment income to average net assets
|
2.20 | % | 2.20 | % | 2.54 | % | 1.48 | % | 1.46 | %(e) | ||||||||||
Portfolio turnover rate
|
112.69 | % | 117.45 | % | 115.99 | % | 20.19 | % | 6.77 | %(b) |
*
|
Commencement of operations.
|
^
|
Based on $15.00 per share public offering price less $0.04 per share of offering expenses related to the Fund’s initial public offering.
|
#
|
Based on average shares outstanding.
|
+
|
Amount rounds to less than $0.01
|
(a)
|
Total investment return at market value is based on the changes in market price of a share during the period and assumes reinvestment of dividends and distributions, if any, at actual prices pursuant to the Fund’s dividend reinvestment plan. Total investment return does not reflect brokerage commissions.
|
(b)
|
Not annualized.
|
(c)
|
Expenses are net of fees paid indirectly.
|
(d)
|
Expenses do not include expenses of investment companies in which the Fund invests.
|
(e)
|
Annualized.
|
(f)
|
Expenses exclude the reduction for fees paid indirectly.
|
Cornerstone Progressive Return Fund
Notes to Financial Statements
|
Cornerstone Progressive Return Fund
Notes to Financial Statements (continued)
|
Cornerstone Progressive Return Fund
Notes to Financial Statements (continued)
|
|
•
|
Level 1 – quoted unadjusted prices for identical instruments in active markets to which the Fund has access at the date of measurement.
|
|
•
|
Level 2 – quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.
|
|
•
|
Level 3 – model derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect the Fund’s own assumptions that market participants would use to price the asset or liability based on the best available information.
|
Valuation Inputs
|
Investments
in Securities
|
Other Financial Instruments*
|
||||||
Level 1 – Quoted Prices
|
||||||||
Equity Investments
|
$ | 76,988,737 | — | |||||
Short-Term Investments
|
1,788,495 | — | ||||||
Level 2 – Other Significant Observable Inputs
|
— | — | ||||||
Level 3 – Significant Unobservable Inputs
|
— | — | ||||||
Total
|
$ | 78,777,232 | — |
*
|
Other financial instruments include futures, forwards and swap contracts.
|
Cornerstone Progressive Return Fund
Notes to Financial Statements (continued)
|
Cornerstone Progressive Return Fund
Notes to Financial Statements (concluded)
|
Shares at beginning of year
|
9,374,829 | |||
Shares newly issued from rights offering
|
6,254,468 | |||
Shares newly issued in reinvestment of dividends and distributions
|
65,407 | |||
Shares at end of year
|
15,694,704 |
Ordinary Income
|
Return-of-Capital
|
||
2011
|
2010
|
2011
|
2010
|
$7,920,949
|
$10,660,166
|
$8,194,697
|
$3,769,736
|
Capital loss carryforward
|
$ | (23,136,587 | ) | |
Net unrealized depreciation
|
(4,884,593 | ) | ||
Total accumulated deficit
|
$ | (28,021,180 | ) |
SOURCES OF DIVIDENDS AND DISTRIBUTIONS
(Per Share Amounts)
|
||||||||||||||||||||||||
Payment Dates:
|
1/31/11
|
2/28/11
|
3/31/11
|
4/29/11
|
5/31/11
|
6/30/11
|
||||||||||||||||||
Ordinary Income(1)
|
$ | 0.0506 | $ | 0.0506 | $ | 0.0506 | $ | 0.0506 | $ | 0.0506 | $ | 0.0506 | ||||||||||||
Return-of-Capital(2)
|
0.0524 | 0.0524 | 0.0524 | 0.0524 | 0.0524 | 0.0524 | ||||||||||||||||||
Total:
|
$ | 0.1030 | $ | 0.1030 | $ | 0.1030 | $ | 0.1030 | $ | 0.1030 | $ | 0.1030 | ||||||||||||
Payment Dates:
|
7/29/11
|
8/31/11
|
9/30/11
|
10/31/11
|
11/30/11
|
12/30/11
|
||||||||||||||||||
Ordinary Income(1)
|
$ | 0.0506 | $ | 0.0506 | $ | 0.0506 | $ | 0.0506 | $ | 0.0506 | $ | 0.0506 | ||||||||||||
Return-of-Capital(2)
|
0.0524 | 0.0524 | 0.0524 | 0.0524 | 0.0524 | 0.0524 | ||||||||||||||||||
Total:
|
$ | 0.1030 | $ | 0.1030 | $ | 0.1030 | $ | 0.1030 | $ | 0.1030 | $ | 0.1030 |
(1)
|
Ordinary Income Dividends – This is the total per share amount of ordinary income dividends and short-term capital gain distributions (if applicable) included in the amount reported in Box 1a on Form 1099-DIV.
|
(2)
|
Return-of-capital – This is the per share amount of return-of-capital, or sometimes called nontaxable, distributions reported in Box 3 – under the title “Nondividend distributions” – on Form 1099-DIV. This amount should not be reported as taxable income on your current return. Rather, it should be treated as a reduction in the original cost basis of your investment in the Fund.
|
Name and
Address*
(Birth Date)
|
Position(s)
Held with Fund
|
Principal Occupation
over Last 5 Years
|
Position with Fund Since
|
Number of Portfolios in Fund Complex Overseen by Trustees
|
Ralph W. Bradshaw**
(Dec. 1950)
|
Chairman of the Board of Trustees and President
|
President, Cornerstone Advisors, Inc.; Financial Consultant; President and Director of Cornerstone Total Return Fund, Inc. and Cornerstone Strategic Value Fund, Inc.
|
2007
|
3
|
Edwin Meese III
(Dec. 1931)
|
Trustee; Audit, Nominating and Corporate Governance Committee Member
|
Distinguished Fellow, The Heritage Foundation Washington D.C.; Distinguished Visiting Fellow at the Hoover Institution, Stanford University; Senior Adviser, Revelation L.P.; Director of Cornerstone Total Return Fund, Inc. and Cornerstone Strategic Value Fund, Inc.
|
2007
|
3
|
Scott B. Rogers
(July 1955)
|
Trustee; Audit, Nominating and Corporate Governance Committee Member
|
Director, Board of Health Partners, Inc.; Chief Executive Officer, Asheville Buncombe Community Christian Ministry; and President, ABCCM Doctor’s Medical Clinic; Director of Cornerstone Total Return Fund, Inc. and Cornerstone Strategic Value Fund, Inc.
|
2007
|
3
|
Name and
Address*
(Birth Date)
|
Position(s)
Held with Fund
|
Principal Occupation
over Last 5 Years
|
Position with Fund Since
|
Number of Portfolios in Fund Complex Overseen by Trustees
|
Andrew A. Strauss
(Nov. 1953)
|
Trustee; Chairman of Nominating and Corporate Governance Committee and Audit Committee Member
|
Attorney and senior member of Strauss & Associates, P.A., Attorneys, Ashevelle and Hendersonville, NC; previous President of White Knight Healthcare, Inc. and LMV Leasing, Inc. a wholly owned subsidiary of Xerox Credit Corporation; Director of Cornerstone Total Return Fund, Inc. and Cornerstone Strategic Value Fund, Inc.
|
2007
|
3
|
Glenn W. Wilcox, Sr.
(Dec. 1931)
|
Trustee; Chairman of Audit Committee, Nominating and Corporate Governance Committee Member
|
Chairman of the Board, Tower Associates, Inc.; Chairman of the Board of Wilcox Travel Agency, Inc.; Director of Champion Industries, Inc.; Director of Cornerstone Total Retrun Fund, Inc. and Cornerstone Strategic Value Fund, Inc.
|
2007
|
3
|
Name and
Address*
(Birth Date)
|
Position(s)
Held with Fund
|
Principal Occupation
over Last 5 Years
|
Position
with Fund Since
|
Gary A. Bentz
(June 1956)
|
Chief Compliance Officer, Secretary, and Assistant Treasurer
|
Chairman and Chief Financial Officer of Cornerstone Advisors, Inc.; Financial Consultant, C.P.A., Chief Compliance Officer, Secretary, and Assistant Treasurer of Cornerstone Total Return Fund, Inc. and Cornerstone Strategic Value Fund, Inc.
|
2007, 2008, 2009
|
Frank J. Maresca
(Oct. 1958)
|
Treasurer
|
Executive Vice President of Ultimus Fund Solutions, LLC (since March 2009); previous Executive Director, JP Morgan Chase & Co. (since June 2008); previous President of Bear Stearns Funds Management, Inc.; previous Senior Managing Director of Bear Stearns & Co., Inc.; Treasurer of Cornerstone Total Return Fund, Inc. and Cornerstone Strategic Value Fund, Inc. (since May 2009).
|
2009
|
*
|
The mailing address of each Trustee and/or Officer with respect to the Fund’s operation is 350 Jericho Turnpike, Suite 206, Jericho, NY 11753.
|
**
|
Designates a trustee who is an “interested person” of the Fund as defined by the Investment Company Act of 1940, as amended. Mr. Bradshaw is an interested person of the Fund by virtue of his current position with the Investment Adviser of the Fund.
|
FACTS
|
WHAT DOES CORNERSTONE PROGRESSIVE RETURN FUND, (THE “FUND”) DO WITH YOUR PERSONAL INFORMATION?
|
Why?
|
Financial companies choose how they share your personal information. Federal law gives consumers the right to limit some but not all sharing. Federal law also requires us to tell you how we collect, share, and protect your personal information. Please read this notice carefully to understand what we do.
|
What?
|
The types of personal information we, and our service providers, on our behalf, collect and share depend on the product or service you have with us. This information can include:
• Social Security number
• account balances
• account transactions
• transaction history
• wire transfer instructions
• checking account information
When you are no longer our customer, we continue to share your information as described in this notice.
|
How?
|
All financial companies need to share customers’ personal information to run their everyday business. In the section below, we list the reasons financial companies can share their customers’ personal information; the reasons the Fund, and our service providers, on our behalf, choose to share; and whether you can limit this sharing.
|
Reasons we can share your personal information
|
Does the Cornerstone Fund share?
|
Can you limit this sharing?
|
For our everyday business purposes – such as to process your transactions, maintain your account(s), respond to court orders and legal investigations, or report to credit bureaus
|
Yes
|
No
|
For our marketing purposes – to offer our products and services to you
|
No
|
We don’t share
|
For joint marketing with other financial companies
|
No
|
We don’t share
|
For our affiliates’ everyday business purposes – information about your transactions and experiences
|
Yes
|
No
|
For our affiliates’ everyday business purposes – information about your creditworthiness
|
No
|
We don’t share
|
For our affiliates to market to you
|
No
|
We don’t share
|
For nonaffiliates to market to you
|
No
|
We don’t share
|
Questions?
|
Call (513) 326 -3597.
|
What we do
|
|
Who is providing this notice?
|
Cornerstone Progressive Return Fund (the “Fund”)
|
How does the Fund and the Fund’s service providers, on the Fund’s behalf protect my personal information?
|
To protect your personal information from unauthorized access and use, we and our service providers use security measures that comply with federal law. These measures include computer safeguards and secured files and buildings.
|
How does the Fund and the Fund’s service providers, on the Fund’s behalf collect my personal information?
|
We collect your personal information, for example, when you:
• open an account
• provide account information
• give us your contact information
• make a wire transfer
We also collect your information from others, such as credit bureaus, affiliates, or other companies.
|
Why can’t I limit all sharing?
|
Federal law gives you the right to limit only
• sharing for affiliates’ everyday business purposes – information about your creditworthiness
• affiliates from using your information to market to you
• sharing for nonaffiliates to market to you
State laws and individual companies may give you additional rights to limit sharing.
|
Definitions
|
|
Affiliates
|
Companies related by common ownership or control. They can be financial and nonfinancial companies.
• Cornerstone Advisors, Inc.
|
Nonaffiliates
|
Companies not related by common ownership or control. They can be financial and nonfinancial companies.
• The Fund does not share with nonaffiliates, so they can market to you.
|
Joint marketing
|
A formal agreement between nonaffiliated financial companies that together market financial products or services to you.
• The Fund does not jointly market.
|
Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940, as amended, that Cornerstone Progressive Return Fund may from time to time purchase its shares in the open market.
|
ITEM 2.
|
CODE OF ETHICS.
|
ITEM 3.
|
AUDIT COMMITTEE FINANCIAL EXPERT.
|
ITEM 4.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES.
|
(a)
|
Audit Fees. The aggregate fees billed for professional services rendered by the principal accountant for the audit of the registrant's annual financial statements or for services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements were $14,500 and $14,500 with respect to the registrant's fiscal years ended December 31, 2011 and 2010, respectively.
|
(b)
|
Audit-Related Fees. No fees were billed in either of the last two fiscal years for assurance and related services by the principal accountant that are reasonably related to the performance of the audit of the registrant's financial statements and are not reported under paragraph (a) of this Item.
|
(c)
|
Tax Fees. The aggregate fees billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning were $3,500 and $3,300 with respect to the registrant's fiscal years ended December 31, 2011 and 2010, respectively. The services comprising these fees are the preparation of the registrant's federal and state income and federal excise tax returns.
|
(d)
|
All Other Fees. $1,500 in fees was billed in with respect to the registrant's fiscal year ended December 31, 2011 related to the review of the registrant’s rights offering registration. No amounts were billed with respect to the registrant's fiscal year ended December 31, 2010.
|
(e)(1)
|
Before the principal accountant is engaged by the registrant to render (i) audit, audit-related or permissible non-audit services to the registrant or (ii) non-audit services to the registrant's investment adviser and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant, either (a) the audit committee shall pre-approve such engagement; or (b) such engagement shall be entered into pursuant to pre-
|
|
approval policies and procedures established by the audit committee. Any such policies and procedures must be detailed as to the particular service and not involve any delegation of the audit committee's responsibilities to the registrant's investment adviser. The audit committee may delegate to one or more of its members the authority to grant pre-approvals. The pre-approval policies and procedures shall include the requirement that the decisions of any member to whom authority is delegated under this provision shall be presented to the full audit committee at its next scheduled meeting. Under certain limited circumstances, pre-approvals are not required if certain de minimus thresholds are not exceeded, as such thresholds are determined by the audit committee in accordance with applicable Commission regulations.
|
(e)(2)
|
None of the services described in paragraph (b) through (d) of this Item were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.
|
(f)
|
Less than 50% of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.
|
(g)
|
During the fiscal years ended December 31, 2011 and 2010 aggregate non-audit fees of $5,000 and $3,300, respectively, were billed by the registrant's principal accountant for services rendered to the registrant. No non-audit fees were billed in either of the last two fiscal years by the registrant's principal accountant for services rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the registrant.
|
(h)
|
The principal accountant has not provided any non-audit services to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant.
|
ITEM 5.
|
AUDIT COMMITTEE OF LISTED REGISTRANTS.
|
(a)
|
The registrant has a separately-designated standing audit committee established in accordance with Section 3(a)(58)(A) of the Securities and Exchange Act of 1934. Glenn W. Wilcox, Sr., (Chairman), Edwin Meese, III, Andrew A. Strauss and Scott B. Rogers are the members of the registrant's audit committee.
|
(b)
|
Not applicable
|
ITEM 6.
|
SCHEDULE OF INVESTMENTS.
|
CORNERSTONE PROGRESSIVE RETURN FUND
|
||||||||
SCHEDULE OF INVESTMENTS - DECEMBER 31, 2011
|
||||||||
Description
|
No. of Shares
|
Value
|
||||||
EQUITY SECURITIES - 98.16%
|
||||||||
CLOSED-END FUNDS - 92.81%
|
||||||||
CONVERTIBLE SECURITIES - 3.33%
|
||||||||
Advent Claymore Convertible Securities and Income Fund
|
37,564 | $ | 553,318 | |||||
Advent/Claymore Global Convertible Securities & Income Fund
|
126,327 | 795,860 | ||||||
AGIC Equity & Convertible Income Fund
|
56,110 | 875,316 | ||||||
Calamos Convertible and High Income Fund
|
33,200 | 383,792 | ||||||
2,608,286 | ||||||||
CORE - 1.33%
|
||||||||
BlackRock Equity Dividend Trust
|
49,444 | 447,963 | ||||||
General American Investors Company, Inc.
|
3,500 | 87,185 | ||||||
Guggenheim Enhanced Equity Strategy Fund
|
200 | 3,206 | ||||||
Liberty All-Star Equity Fund
|
9,000 | 37,980 | ||||||
Source Capital, Inc.
|
10,000 | 469,800 | ||||||
1,046,134 | ||||||||
CORPORATE DEBT FUNDS INVESTMENT GRADE-RATED - 3.67%
|
||||||||
Cutwater Select Income Fund
|
1 | 25 | ||||||
Federated Enhanced Treasury Income Fund
|
59,077 | 847,755 | ||||||
Western Asset/Claymore Inflation-Linked Opportunities & Income Fund
|
122,194 | 1,540,866 | ||||||
Western Asset/Claymore Inflation-Linked Securities & Income Fund
|
38,779 | 490,167 | ||||||
2,878,813 | ||||||||
DEVELOPED MARKET - 1.49%
|
||||||||
Japan Smaller Capitalization Fund, Inc.
|
162,524 | 1,166,922 | ||||||
EMERGING MARKETS - 0.97%
|
||||||||
First Israel Fund, Inc.
|
5,524 | 70,431 | ||||||
First Trust/Aberdeen Emerging Opportunity Fund
|
25,481 | 454,071 | ||||||
India Fund, Inc. (The)
|
10,400 | 198,016 | ||||||
Morgan Stanley Eastern Europe Fund, Inc.
|
2,892 | 38,926 | ||||||
761,444 | ||||||||
EMERGING MARKETS DEBT - 0.08%
|
||||||||
Morgan Stanley Emerging Markets Debt Fund, Inc.
|
6,208 | 64,625 | ||||||
FLEXIBLE INCOME - 4.89%
|
||||||||
Putnam Master Intermediate Income Trust
|
100,567 | 510,880 |
CORNERSTONE PROGRESSIVE RETURN FUND
|
||||||||
SCHEDULE OF INVESTMENTS - DECEMBER 31, 2011 (Continued)
|
||||||||
Description
|
No. of Shares
|
Value
|
||||||
CLOSED-END FUNDS (Continued)
|
||||||||
FLEXIBLE INCOME (Continued)
|
||||||||
Putnam Premier Income Trust
|
207,801 | $ | 1,078,487 | |||||
Wells Fargo Advantage Multi-Sector Income Fund
|
18,920 | 279,638 | ||||||
Zweig Total Return Fund, Inc. (The)
|
648,533 | 1,965,055 | ||||||
3,834,060 | ||||||||
GENERAL MUNICIPAL LEVERAGED - 1.01%
|
||||||||
Eaton Vance Tax-Advantaged Bond and Option Strategies Fund
|
48,070 | 795,559 | ||||||
GLOBAL - 4.45%
|
||||||||
Clough Global Allocation Fund
|
29,600 | 377,400 | ||||||
Clough Global Equity Fund
|
44,069 | 530,150 | ||||||
Clough Global Opportunities Fund
|
45,014 | 475,798 | ||||||
Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund
|
59,200 | 1,006,400 | ||||||
First Trust Active Dividend Income Fund (The)
|
32,295 | 270,632 | ||||||
Gabelli Global Multimedia Trust Inc.
|
35,993 | 224,596 | ||||||
GDL Fund (The)
|
34,679 | 409,212 | ||||||
Virtus Total Return Fund
|
47,297 | 165,540 | ||||||
Wells Fargo Advantage Global Dividend Opportunity Fund
|
3,512 | 26,656 | ||||||
3,486,384 | ||||||||
GLOBAL INCOME - 0.43%
|
||||||||
Nuveen Global Government Enhanced Income Fund
|
22,058 | 312,341 | ||||||
Western Asset Variable Rate Strategic Fund Inc.
|
1,627 | 24,161 | ||||||
336,502 | ||||||||
HIGH CURRENT YIELD (LEVERAGED) - 0.44%
|
||||||||
BlackRock Senior High Income Fund, Inc.
|
63,759 | 245,472 | ||||||
Helios Strategic Income Fund, Inc.
|
18,745 | 102,910 | ||||||
348,382 | ||||||||
INCOME & PREFERRED STOCK - 1.12%
|
||||||||
Calamos Strategic Total Return Fund
|
89,438 | 746,807 | ||||||
Dividend and Income Fund, Inc.
|
24,466 | 83,918 | ||||||
Nuveen Tax-Advantaged Floating Rate Fund
|
25,003 | 51,256 | ||||||
881,981 |
CORNERSTONE PROGRESSIVE RETURN FUND
|
||||||||
SCHEDULE OF INVESTMENTS - DECEMBER 31, 2011 (Continued)
|
||||||||
Description
|
No. of Shares
|
Value
|
||||||
CLOSED-END FUNDS (Continued)
|
||||||||
LOAN PARTICIPATION - 11.48%
|
||||||||
Apollo Senior Floating Rate Fund Inc.
|
32,771 | $ | 524,664 | |||||
BlackRock Defined Opportunity Credit Trust
|
4,800 | 59,760 | ||||||
BlackRock Diversified Income Strategies Fund, Inc.
|
30,547 | 290,197 | ||||||
BlackRock Floating Rate Income Strategies Fund, Inc.
|
47,461 | 634,079 | ||||||
BlackRock Floating Rate Income Strategies Fund II, Inc.
|
30,231 | 372,748 | ||||||
BlackRock Floating Rate Income Trust
|
65,790 | 886,191 | ||||||
Eaton Vance Floating-Rate Income Trust
|
108,368 | 1,542,077 | ||||||
Eaton Vance Senior Floating-Rate Trust
|
124,894 | 1,795,976 | ||||||
Eaton Vance Senior Income Trust
|
98,935 | 646,046 | ||||||
Invesco Van Kampen Dynamic Credit Opportunities Fund
|
110,514 | 1,168,133 | ||||||
Invesco Van Kampen Senior Income Trust
|
254,017 | 1,087,193 | ||||||
9,007,064 | ||||||||
OPTION ARBITRAGE/OPTIONS STRATEGIES - 50.08%
|
||||||||
AGIC International & Premium Strategy Fund
|
26,200 | 259,118 | ||||||
BlackRock Enhanced Capital & Income Fund, Inc.
|
202,852 | 2,495,080 | ||||||
BlackRock Enhanced Equity Dividend Trust
|
332,916 | 2,353,716 | ||||||
BlackRock Global Opportunities Equity Trust
|
105,197 | 1,389,652 | ||||||
BlackRock International Growth and Income Trust
|
270,543 | 1,937,088 | ||||||
Cohen & Steers Global Income Builder, Inc.
|
84,369 | 784,632 | ||||||
Eaton Vance Enhanced Equity Income Fund
|
208,336 | 2,120,860 | ||||||
Eaton Vance Enhanced Equity Income Fund II
|
243,653 | 2,487,697 | ||||||
Eaton Vance Risk-Managed Diversified Equity Income Fund
|
361,450 | 3,777,153 | ||||||
Eaton Vance Tax-Managed Buy-Write Income Fund
|
147,258 | 1,890,793 | ||||||
Eaton Vance Tax-Managed Buy-Write Opportunities Fund
|
264,757 | 3,102,952 | ||||||
Eaton Vance Tax-Managed Diversified Equity Income Fund
|
407,200 | 3,611,864 | ||||||
Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund
|
367,136 | 3,774,158 | ||||||
Eaton Vance Tax-Managed Global Diversified Equity Income Fund
|
467,796 | 3,859,317 | ||||||
First Trust Enhanced Equity Income Fund
|
23,679 | 256,444 |
CORNERSTONE PROGRESSIVE RETURN FUND
|
||||||||
SCHEDULE OF INVESTMENTS - DECEMBER 31, 2011 (Continued)
|
||||||||
Description
|
No. of Shares
|
Value
|
||||||
CLOSED-END FUNDS (Continued)
|
||||||||
OPTION ARBITRAGE/OPTIONS STRATEGIES (Continued)
|
||||||||
ING Global Advantage and Premium Opportunity Fund
|
10,704 | $ | 114,640 | |||||
Madison Strategic Sector Premium Fund
|
17,100 | 181,944 | ||||||
Madison/Claymore Covered Call & Equity Strategy Fund
|
39,985 | 298,688 | ||||||
Nuveen Equity Premium Advantage Fund
|
76,057 | 871,613 | ||||||
Nuveen Equity Premium and Growth Fund
|
40,216 | 485,407 | ||||||
Nuveen Equity Premium Income Fund
|
118,860 | 1,328,855 | ||||||
Nuveen Equity Premium Opportunity Fund
|
166,495 | 1,901,373 | ||||||
39,283,044 | ||||||||
PACIFIC EX JAPAN - 3.06%
|
||||||||
Morgan Stanley China A Share Fund, Inc.
|
123,933 | 2,398,104 | ||||||
REAL ESTATE - 1.96%
|
||||||||
Alpine Global Premier Properties Fund
|
52,100 | 276,130 | ||||||
CBRE Clarion Global Real Estate Income Fund
|
114,937 | 786,169 | ||||||
Cohen & Steers Total Return Realty Fund, Inc.
|
1,800 | 21,438 | ||||||
LMP Real Estate Income Fund, Inc.
|
32,652 | 302,031 | ||||||
Neuberger Berman Real Estate Securities Income Fund Inc.
|
39,247 | 147,176 | ||||||
RMR Asia Pacific Real Estate Fund
|
1 | 13 | ||||||
1,532,957 | ||||||||
SECTOR EQUITY - 2.99%
|
||||||||
BlackRock EcoSolutions Investment Trust
|
70,379 | 550,364 | ||||||
First Trust Specialty Finance and Finance Opportunities Fund
|
17,550 | 110,565 | ||||||
Gabelli Healthcare & WellnessRx Trust (The) *
|
22,831 | 163,013 | ||||||
ING Risk Managed Natural Resources Fund
|
72,416 | 825,542 | ||||||
Nuveen MLP & Strategic Equity Fund, Inc.
|
36,506 | 623,522 | ||||||
Petroleum & Resources Corporation
|
3,049 | 74,640 | ||||||
2,347,646 | ||||||||
VALUE - 0.03%
|
||||||||
Nuveen Tax-Advantaged Total Return Strategy Fund
|
2,200 | 21,032 | ||||||
TOTAL CLOSED-END FUNDS
|
72,798,939 |
CORNERSTONE PROGRESSIVE RETURN FUND
|
||||||||
SCHEDULE OF INVESTMENTS - DECEMBER 31, 2011 (Continued)
|
||||||||
Description
|
No. of Shares
|
Value
|
||||||
CONSUMER DISCRETIONARY - 0.41%
|
||||||||
Comcast Corporation - Class A
|
3,358 | $ | 79,618 | |||||
DIRECTV Group, Inc. (The) - Class A *
|
4,000 | 171,040 | ||||||
Time Warner, Inc.
|
2,000 | 72,280 | ||||||
322,938 | ||||||||
CONSUMER STAPLES - 0.53%
|
||||||||
Wal-Mart Stores, Inc.
|
7,000 | 418,320 | ||||||
ENERGY - 1.05%
|
||||||||
Chevron Corporation
|
5,000 | 532,000 | ||||||
ConocoPhillips
|
4,000 | 291,480 | ||||||
823,480 | ||||||||
FINANCIALS - 0.63%
|
||||||||
AFLAC, Inc.
|
2,000 | 86,520 | ||||||
American Express Company
|
3,000 | 141,510 | ||||||
JPMorgan Chase & Co.
|
8,000 | 266,000 | ||||||
494,030 | ||||||||
HEALTH CARE - 0.75%
|
||||||||
Abbott Laboratories
|
3,000 | 168,690 | ||||||
Becton, Dickinson and Company
|
3,000 | 224,160 | ||||||
Cardinal Health, Inc.
|
2,000 | 81,220 | ||||||
Merck & Company, Inc.
|
3,000 | 113,100 | ||||||
587,170 | ||||||||
INDUSTRIALS - 0.59%
|
||||||||
Emerson Electric Company
|
2,000 | 93,180 | ||||||
Union Pacific Corporation
|
2,000 | 211,880 | ||||||
United Technologies Corporation
|
2,108 | 154,074 | ||||||
459,134 | ||||||||
INFORMATION TECHNOLOGY - 1.20%
|
||||||||
International Business Machines Corporation
|
3,000 | 551,640 | ||||||
Oracle Corporation
|
15,000 | 384,750 | ||||||
936,390 | ||||||||
MATERIALS - 0.11%
|
||||||||
Freeport-McMoRan Copper & Gold, Inc.
|
2,238 | 82,336 | ||||||
UTILITIES - 0.08%
|
||||||||
Duke Energy Corporation
|
3,000 | 66,000 | ||||||
TOTAL EQUITY SECURITIES (cost - $81,849,724)
|
76,988,737 |
CORNERSTONE PROGRESSIVE RETURN FUND
|
||||||||
SCHEDULE OF INVESTMENTS - DECEMBER 31, 2011 (Continued)
|
||||||||
Description
|
No. of Shares
|
Value
|
||||||
SHORT-TERM INVESTMENT - 2.28%
|
||||||||
MONEY MARKET FUND - 2.28%
|
||||||||
Fidelity Institutional Money Market Government Portfolio - Class I (cost - $1,788,495)
|
1,788,495 | $ | 1,788,495 | |||||
TOTAL INVESTMENTS - 100.44% (cost - $83,638,219)
|
78,777,232 | |||||||
LIABILITIES IN EXCESS OF OTHER ASSETS - (0.44)%
|
(342,601 | ) | ||||||
NET ASSETS - 100.00%
|
$ | 78,434,631 |
ITEM 7.
|
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
ITEM 8.
|
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
(a)(1)
|
All information included in this Item is as of the date of the filing of this Form N-CSR, unless otherwise noted. Ralph W. Bradshaw is the portfolio manager of the registrant. Mr. Bradshaw has acted as the portfolio manager since 2007. Mr. Bradshaw is President and Chief Financial Officer of Cornerstone Advisors, Inc. and serves as President and Chairman of the Board of the registrant, Cornerstone Strategic Value Fund, Inc. and Cornerstone Total Return Fund, Inc.
|
(a)(2)
|
Ralph W. Bradshaw manages two other closed-end registered investment companies: Cornerstone Strategic Value Fund, Inc. and Cornerstone Total Return Fund, Inc. As of December 31, 2011, net assets of Cornerstone Strategic Value Fund, Inc. were $88,110,759 and net assets of Cornerstone Total Return Fund, Inc. were $36,003,882. Mr. Bradshaw manages no accounts except for the registrant, Cornerstone Strategic Value Fund, Inc. and Cornerstone Total Return Fund, Inc. Mr. Bradshaw manages no accounts where the advisory fee is based on the performance of the account. No material conflicts of interest exist in connection with the portfolio manager's management of the registrant's investments, on the one hand, and the investment of the other accounts included in response to this Item, on the other.
|
(a)(3)
|
Compensation of Ralph W. Bradshaw includes a fixed salary paid by Cornerstone Advisors, Inc. plus his share of the profits of Cornerstone Advisors, Inc. The profitability of Cornerstone Advisors, Inc. is primarily dependent upon the value of the assets of the registrant and other managed accounts. However, compensation is not directly based upon the registrant's performance or on the value of the registrant's assets.
|
(a)(4)
|
The dollar range of equity securities in the registrant beneficially owned by the portfolio manager as of December 31, 2011 is as follows: Ralph W. Bradshaw: $10,001 - $50,000
|
(b)
|
Not applicable
|
ITEM 9.
|
PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
|
ITEM 10.
|
SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
|
ITEM 11.
|
CONTROLS AND PROCEDURES.
|
ITEM 12.
|
EXHIBITS.
|
Exhibit 99.CODE ETH
|
Code of Ethics
|
Exhibit 99.VOTEREG
|
Proxy Voting Policies and Procedures
|
Exhibit 99.CERT
|
Certifications required by Rule 30a-2(a) under the Act
|
Exhibit 99.906CERT
|
Certifications required by Rule 30a-2(b) under the Act
|
By (Signature and Title)*
|
/s/ Ralph W. Bradshaw
|
||
Ralph W. Bradshaw, Chairman and President
|
|||
(Principal Executive Officer)
|
|||
Date
|
February 24, 2012
|
By (Signature and Title)*
|
/s/ Ralph W. Bradshaw
|
||
Ralph W. Bradshaw, Chairman and President
|
|||
(Principal Executive Officer)
|
|||
Date
|
February 24, 2012
|
||
By (Signature and Title)*
|
/s/ Frank J. Maresca
|
||
Frank J. Maresca, Treasurer
|
|||
(Principal Financial Officer)
|
|||
Date
|
February 24, 2012
|