7 Dawson Street, Huntington Station, New York
|
11746
|
(Address of principal executive offices)
|
(Zip code)
|
Date of fiscal year end:
|
December 31, 2014
|
Date of reporting period:
|
June 30, 2014
|
ITEM 1.
|
REPORTS TO STOCKHOLDERS.
|
Portfolio Summary
|
1
|
Schedule of Investments
|
2
|
Statement of Assets and Liabilities
|
9
|
Statement of Operations
|
10
|
Statement of Changes in Net Assets
|
11
|
Financial Highlights
|
12
|
Notes to Financial Statements
|
13
|
Results of Annual Meeting of Shareholders
|
18
|
Investment Management Agreement Approval Disclosure
|
19
|
Description of Dividend Reinvestment Plan
|
21
|
Proxy Voting and Portfolio Holdings Information
|
23
|
Privacy Policy Notice
|
24
|
Summary of General Information
|
27
|
Shareholder Information
|
27
|
Cornerstone Progressive Return Fund
Portfolio Summary – as of June 30, 2014 (unaudited)
|
Sector
|
Percent of
Net Assets
|
Closed-End Funds
|
59.8
|
Exchange-Traded Funds
|
5.9
|
Information Technology
|
4.1
|
Financials
|
2.8
|
Consumer Discretionary
|
2.2
|
Energy
|
2.0
|
Health Care
|
2.0
|
Industrials
|
1.6
|
Consumer Staples
|
1.0
|
Telecommunication Services
|
0.9
|
Materials
|
0.5
|
Utilities
|
0.1
|
Other
|
17.1
|
|
Holding
|
Sector
|
Percent of
Net Assets
|
1.
|
Cohen & Steers Preferred Securities and Income Fund, Inc.
|
Closed-End Funds
|
3.2
|
2.
|
iShares Core S&P 500 ETF
|
Exchange-Traded Funds
|
2.9
|
3.
|
Alpine Global Total Dynamic Dividend Fund
|
Closed-End Funds
|
2.9
|
4.
|
SPDR S&P 500 ETF Trust
|
Exchange-Traded Funds
|
2.9
|
5.
|
Cohen & Steers Quality Income Realty Fund, Inc.
|
Closed-End Funds
|
2.1
|
6.
|
CBRE Clarion Global Real Estate Income Fund
|
Closed-End Funds
|
2.1
|
7.
|
BlackRock Resources & Commodities Strategy Trust
|
Closed-End Funds
|
2.0
|
8.
|
BlackRock Real Asset Equity Trust
|
Closed-End Funds
|
1.9
|
9.
|
Nuveen Energy MLP Total Return Fund
|
Closed-End Funds
|
1.9
|
10.
|
Apple Inc.
|
Information Technology
|
1.6
|
Cornerstone Progressive Return Fund
Schedule of Investments – June 30, 2014 (unaudited)
|
Description
|
No. of
Shares
|
Value
|
||||||
EQUITY SECURITIES — 82.87%
|
||||||||
CLOSED-END FUNDS — 59.83%
|
||||||||
CONVERTIBLE SECURITIES — 0.33%
|
||||||||
AllianzGI Equity & Convertible Income Fund
|
46,716 | $ | 943,663 | |||||
CORE — 2.96%
|
||||||||
Adams Express Company (The)
|
153,410 | 2,109,387 | ||||||
Advent/Claymore Enhanced Growth & Income Fund
|
23,826 | 245,408 | ||||||
General American Investors Company, Inc.
|
65,943 | 2,427,362 | ||||||
Guggenheim Equal Weight Enhanced Equity Income Fund
|
95,151 | 1,905,875 | ||||||
Liberty All-Star Equity Fund
|
115,339 | 693,187 | ||||||
Royce Focus Trust, Inc.
|
1,300 | 11,115 | ||||||
Source Capital, Inc.
|
600 | 41,988 | ||||||
Tri-Continental Corporation
|
53,591 | 1,124,339 | ||||||
8,558,661 | ||||||||
CORPORATE DEBT INVESTMENT GRADE-RATED — 0.00%
|
||||||||
Cutwater Select Income Fund
|
1 | 27 | ||||||
CORPORATE DEBT INVESTMENT GRADE-RATED (LEVERAGED) — 0.00%
|
||||||||
John Hancock Income Securities Trust
|
355 | 5,201 | ||||||
DEVELOPED MARKET — 0.27%
|
||||||||
Aberdeen Australia Equity Fund, Inc.
|
4,500 | 40,860 | ||||||
Aberdeen Israel Fund, Inc.
|
536 | 9,653 | ||||||
Aberdeen Singapore Fund, Inc.
|
26,484 | 345,881 | ||||||
Description
|
No. of
Shares
|
Value
|
||||||
DEVELOPED MARKET (continued)
|
||||||||
New Ireland Fund, Inc. (The)
|
21,255 | $ | 289,706 | |||||
Swiss Helvetia Fund, Inc. (The)
|
5,847 | 85,191 | ||||||
771,291 | ||||||||
EMERGING MARKETS — 1.56%
|
||||||||
First Trust/Aberdeen Emerging Opportunity Fund
|
34,215 | 653,849 | ||||||
Morgan Stanley India Investment Fund, Inc. *
|
59,108 | 1,367,759 | ||||||
Templeton Emerging Markets Fund
|
2,300 | 41,929 | ||||||
Templeton Russia and East European Fund, Inc.
|
9,215 | 140,621 | ||||||
Voya Emerging Markets High Dividend Equity Fund
|
180,122 | 2,298,357 | ||||||
4,502,515 | ||||||||
EMERGING MARKETS DEBT — 0.41%
|
||||||||
Stone Harbor Emerging Markets Income Fund
|
6,147 | 129,579 | ||||||
Western Asset Emerging Markets Debt Fund Inc.
|
57,805 | 1,062,456 | ||||||
1,192,035 | ||||||||
FLEXIBLE INCOME — 0.36%
|
||||||||
MFS Charter Income Trust
|
114,139 | 1,054,644 | ||||||
ENERGY MLP — 5.89%
|
||||||||
ClearBridge Energy MLP Fund Inc.
|
87,210 | 2,603,218 | ||||||
ClearBridge Energy MLP Opportunity Fund Inc.
|
121,079 | 3,075,407 | ||||||
ClearBridge Energy MLP Total Return Fund Inc.
|
167,062 | 3,999,464 | ||||||
First Trust MLP and Energy Income Fund
|
88,792 | 1,914,356 |
Cornerstone Progressive Return Fund
Schedule of Investments – June 30, 2014 (unaudited) (continued)
|
Description
|
No. of
Shares
|
Value | ||||||
ENERGY MLP (continued)
|
||||||||
Nuveen Energy MLP Total Return Fund
|
245,325 | $ | 5,451,121 | |||||
17,043,566 | ||||||||
GENERAL & INSURED LEVERAGED — 3.24%
|
||||||||
BlackRock MuniHoldings Investment Quality Fund
|
2,800 | 38,864 | ||||||
BlackRock MuniHoldings Quality Fund II, Inc.
|
96,305 | 1,276,041 | ||||||
Eaton Vance National Municipal Opportunities Trust
|
7,056 | 141,120 | ||||||
Eaton Vance Tax-Advantaged Bond and Option Strategies Fund
|
58,036 | 805,540 | ||||||
Invesco Advantage Municipal Income Trust II
|
133,008 | 1,509,641 | ||||||
Invesco Municipal Opportunity Trust
|
50,199 | 632,507 | ||||||
Invesco Municipal Trust
|
31,550 | 395,006 | ||||||
Invesco Trust for Investment Grade Municipals
|
119,422 | 1,556,069 | ||||||
Invesco Value Municipal Income Trust
|
0 | 7 | ||||||
MainStay DefinedTerm Municipal Opportunities Fund
|
1,500 | 26,760 | ||||||
Managed Duration Investment Grade Municipal Fund
|
5,889 | 81,150 | ||||||
MFS Investment Grade Municipal Trust
|
28,806 | 267,032 | ||||||
Nuveen Dividend Advantage Municipal Fund 3
|
113,826 | 1,557,140 | ||||||
Nuveen Dividend Advantage Municipal Income Fund
|
33,515 | 474,572 | ||||||
Description
|
No. of
Shares
|
Value | ||||||
GENERAL & INSURED LEVERAGED (continued)
|
||||||||
Nuveen Quality Municipal Fund, Inc.
|
1,971 | $ | 25,840 | |||||
Nuveen Select Quality Municipal Fund, Inc.
|
37,570 | 520,720 | ||||||
Western Asset Managed Municipals Fund Inc.
|
4,749 | 62,212 | ||||||
9,370,221 | ||||||||
GENERAL BOND — 0.26%
|
||||||||
DWS Multi-Market Income Trust
|
15,169 | 143,650 | ||||||
MFS Multimarket Income Trust
|
91,451 | 608,149 | ||||||
751,799 | ||||||||
GLOBAL — 6.84%
|
||||||||
Alpine Global Dynamic Dividend Fund
|
200,705 | 2,109,410 | ||||||
Alpine Global Total Dynamic Dividend Fund
|
945,029 | 8,429,659 | ||||||
Clough Global Allocation Fund
|
6,802 | 105,023 | ||||||
Clough Global Opportunities Fund
|
14,316 | 186,108 | ||||||
Delaware Enhanced Global Dividend and Income Fund
|
171,772 | 2,179,787 | ||||||
Gabelli Global Utility & Income Trust (The)
|
33,871 | 706,549 | ||||||
GDL Fund (The)
|
34,778 | 377,689 | ||||||
Nuveen Global Value Opportunities Fund
|
133,841 | 1,971,478 | ||||||
Virtus Total Return Fund
|
200,681 | 963,269 | ||||||
Wells Fargo Advantage Global Dividend Opportunity Fund
|
325,819 | 2,766,203 | ||||||
19,795,175 | ||||||||
GLOBAL INCOME — 1.17%
|
||||||||
First Trust/Aberdeen Global Opportunity Income Fund
|
13,647 | 200,338 |
Cornerstone Progressive Return Fund
Schedule of Investments – June 30, 2014 (unaudited) (continued)
|
Description
|
No. of
Shares
|
Value | ||||||
GLOBAL INCOME (continued)
|
||||||||
Legg Mason BW Global Income Opportunities Fund Inc.
|
89,421 | $ | 1,640,875 | |||||
Nuveen Global Income Opportunities Fund
|
41,772 | 532,593 | ||||||
Nuveen Multi-Currency Short-Term Government Income Fund
|
74,037 | 831,436 | ||||||
Templeton Global Income Fund
|
22,400 | 185,024 | ||||||
3,390,266 | ||||||||
HIGH CURRENT YIELD (LEVERAGED) — 1.85%
|
||||||||
AllianceBernstein Global High Income Fund, Inc.
|
22,028 | 316,542 | ||||||
BlackRock Corporate High Yield Fund VI, Inc.
|
165,141 | 2,029,583 | ||||||
BlackRock Debt Strategies Fund, Inc.
|
6,609 | 27,097 | ||||||
DWS High Income Opportunities Fund, Inc.
|
91,689 | 1,354,247 | ||||||
DWS High Income Trust
|
68,425 | 643,879 | ||||||
First Trust Strategic High Income Fund II
|
4,604 | 75,275 | ||||||
Franklin Universal Trust
|
52,076 | 391,612 | ||||||
Invesco High Income Trust II
|
11,284 | 193,408 | ||||||
MFS Intermediate High Income Fund
|
38,669 | 113,687 | ||||||
Neuberger Berman High Yield Strategies Fund Inc.
|
15,429 | 213,692 | ||||||
5,359,022 | ||||||||
HIGH YIELD — 0.49%
|
||||||||
Credit Suisse Asset Management Income Fund, Inc.
|
2,200 | 8,030 | ||||||
First Trust High Income Long/Short Fund
|
46,839 | 850,128 | ||||||
Description
|
No. of
Shares
|
Value | ||||||
HIGH YIELD (continued)
|
||||||||
Western Asset High Income Opportunity Fund Inc.
|
7,797 | $ | 47,562 | |||||
Western Asset High Yield Defined Opportunity Fund Inc.
|
17,728 | 317,508 | ||||||
Western Asset Managed High Income Fund Inc.
|
31,664 | 183,651 | ||||||
1,406,879 | ||||||||
HIGH YIELD MUNICIPAL DEBT — 0.18%
|
||||||||
MFS High Income Municipal Trust
|
76,447 | 366,181 | ||||||
MFS High Yield Municipal Trust
|
11,000 | 47,520 | ||||||
MFS Municipal Income Trust
|
18,043 | 119,084 | ||||||
532,785 | ||||||||
INCOME & PREFERRED STOCK — 1.34%
|
||||||||
Cohen & Steers Limited Duration Preferred and Income Fund, Inc.
|
4,961 | 126,307 | ||||||
John Hancock Premium Dividend Fund
|
70,356 | 956,138 | ||||||
LMP Capital and Income Fund Inc.
|
91,642 | 1,625,729 | ||||||
Nuveen Quality Preferred Income Fund 3
|
92,642 | 804,133 | ||||||
Nuveen Tax-Advantaged Dividend Growth Fund
|
22,622 | 368,739 | ||||||
3,881,046 | ||||||||
LOAN PARTICIPATION — 5.10%
|
||||||||
Apollo Senior Floating Rate Fund Inc.
|
2,500 | 45,125 | ||||||
BlackRock Floating Rate Income Strategies Fund, Inc
|
37,775 | 553,404 | ||||||
BlackRock Floating Rate Income Trust
|
13,434 | 190,897 |
Cornerstone Progressive Return Fund
Schedule of Investments – June 30, 2014 (unaudited) (continued)
|
Description
|
No. of
Shares
|
Value | ||||||
LOAN PARTICIPATION (continued)
|
||||||||
Blackstone / GSO Senior Floating Rate Term Fund
|
42,163 | $ | 755,139 | |||||
Eaton Vance Senior Floating-Rate Trust
|
39,268 | 583,915 | ||||||
Eaton Vance Floating-Rate Income Trust
|
142,701 | 2,153,358 | ||||||
Eaton Vance Senior Income Trust
|
14,165 | 96,464 | ||||||
First Trust Senior Floating Rate Income Fund II
|
61,356 | 876,777 | ||||||
Invesco Senior Income Trust
|
243,858 | 1,221,729 | ||||||
LMP Corporate Loan Fund Inc.
|
11,943 | 143,555 | ||||||
Nuveen Credit Strategies Income Fund
|
407,270 | 3,812,047 | ||||||
Nuveen Floating Rate Income Fund
|
101,995 | 1,234,139 | ||||||
Nuveen Senior Income Fund
|
137,717 | 970,905 | ||||||
Nuveen Short Duration Credit Opportunities Fund
|
2,000 | 36,800 | ||||||
Voya Prime Rate Trust
|
358,438 | 2,075,356 | ||||||
14,749,610 | ||||||||
NATURAL RESOURCES — 5.84%
|
||||||||
BlackRock Energy and Resources Trust
|
46,925 | 1,265,567 | ||||||
BlackRock Real Asset Equity Trust
|
597,924 | 5,614,506 | ||||||
BlackRock Resources & Commodities Strategy Trust
|
463,946 | 5,757,570 | ||||||
First Trust Energy Income and Growth Fund
|
6,350 | 229,552 | ||||||
First Trust Energy Infrastructure Fund
|
17,166 | 408,036 | ||||||
Petroleum & Resources Corporation
|
83,545 | 2,604,933 | ||||||
Description
|
No. of
Shares
|
Value | ||||||
NATURAL RESOURCES (continued)
|
||||||||
Voya Natural Resources Equity Income Fund
|
89,410 | $ | 1,028,215 | |||||
16,908,379 | ||||||||
OPTION ARBITRAGE/OPTIONS STRATEGIES — 3.15%
|
||||||||
BlackRock Global Opportunities Equity Trust
|
250,786 | 3,774,329 | ||||||
BlackRock International Growth and Income Trust
|
445,042 | 3,667,146 | ||||||
Voya Asia Pacific High Dividend Equity Income Fund
|
55,060 | 735,051 | ||||||
Voya Global Advantage and Premium Opportunity Fund
|
74,789 | 922,148 | ||||||
9,098,674 | ||||||||
PACIFIC EX JAPAN — 1.35%
|
||||||||
Aberdeen Greater China Fund, Inc.
|
98,060 | 1,024,727 | ||||||
China Fund, Inc. (The)
|
117,190 | 2,480,912 | ||||||
Taiwan Fund, Inc. *
|
18,973 | 388,757 | ||||||
3,894,396 | ||||||||
REAL ESTATE — 11.24%
|
||||||||
Alpine Global Premier Properties Fund
|
473,372 | 3,521,888 | ||||||
CBRE Clarion Global Real Estate Income Fund
|
651,078 | 5,931,321 | ||||||
Cohen & Steers Preferred Securities and Income Fund, Inc.
|
519,678 | 9,369,794 | ||||||
Cohen & Steers Quality Income Realty Fund, Inc.
|
542,870 | 6,107,287 | ||||||
Cohen & Steers Total Return Realty Fund, Inc.
|
66,022 | 818,673 | ||||||
LMP Real Estate Income Fund Inc.
|
128,601 | 1,480,198 |
Cornerstone Progressive Return Fund
Schedule of Investments – June 30, 2014 (unaudited) (continued)
|
Description
|
No. of
Shares
|
Value | ||||||
REAL ESTATE (continued)
|
||||||||
Neuberger Berman Real Estate Securities Income Fund Inc.
|
473,465 | $ | 2,367,325 | |||||
Nuveen Diversified Dividend and Income Fund
|
105,519 | 1,293,663 | ||||||
Nuveen Real Estate Income Fund
|
36,266 | 405,454 | ||||||
RMR Asia Pacific Real Estate Fund
|
61,347 | 1,208,535 | ||||||
32,504,138 | ||||||||
SECTOR EQUITY — 1.07%
|
||||||||
First Trust Specialty Finance and Financial Opportunities Fund
|
5,925 | 48,052 | ||||||
GAMCO Natural Resources, Gold & Income Trust by Gabelli
|
149,168 | 1,718,415 | ||||||
John Hancock Financial Opportunities Fund
|
57,338 | 1,326,801 | ||||||
3,093,268 | ||||||||
U.S. MORTGAGE — 0.28%
|
||||||||
First Trust Mortgage Income Fund
|
31,726 | 503,174 | ||||||
Nuveen Mortgage Opportunity Term Fund
|
3,000 | 73,680 | ||||||
Nuveen Mortgage Opportunity Term Fund 2
|
9,618 | 228,908 | ||||||
805,762 | ||||||||
UTILITY — 4.50%
|
||||||||
BlackRock EcoSolutions Investment Trust
|
127,519 | 1,057,133 | ||||||
BlackRock Utility and Infrastructure Trust
|
133,645 | 2,798,526 | ||||||
Brookfield Global Listed Infrastructure Income Fund Inc.
|
94,367 | 2,364,837 | ||||||
Description
|
No. of Shares |
Value | ||||||
UTILITY (continued)
|
||||||||
Cohen & Steers Infrastructure Fund, Inc.
|
79,885 | $ | 1,956,384 | |||||
Duff & Phelps Global Utility Income Fund Inc.
|
117,575 | 2,585,474 | ||||||
Reaves Utility Income Fund
|
74,322 | 2,226,687 | ||||||
Wells Fargo Advantage Utilities and High Income Fund
|
2,400 | 31,152 | ||||||
13,020,193 | ||||||||
VALUE — 0.15%
|
||||||||
John Hancock Tax-Advantaged Dividend Income Fund
|
20,529 | 429,672 | ||||||
TOTAL CLOSED-END FUNDS
|
173,062,888 | |||||||
CONSUMER DISCRETIONARY — 2.15%
|
||||||||
Comcast Corporation - Class A
|
31,358 | 1,683,297 | ||||||
DIRECTV *
|
4,000 | 340,040 | ||||||
Ford Motor Company
|
30,000 | 517,200 | ||||||
Johnson Controls, Inc.
|
7,000 | 349,510 | ||||||
Macy's, Inc.
|
4,000 | 232,080 | ||||||
Time Warner Cable Inc.
|
2,000 | 294,600 | ||||||
Time Warner Inc.
|
12,000 | 843,000 | ||||||
Walt Disney Company (The)
|
23,000 | 1,972,020 | ||||||
6,231,747 | ||||||||
CONSUMER STAPLES — 0.98%
|
||||||||
Archer-Daniels-Midland Company
|
4,000 | 176,440 | ||||||
CVS Caremark Corporation
|
18,000 | 1,356,660 | ||||||
Kroger Co. (The)
|
8,000 | 395,440 | ||||||
PepsiCo, Inc.
|
10,000 | 893,400 | ||||||
2,821,940 |
Cornerstone Progressive Return Fund
Schedule of Investments – June 30, 2014 (unaudited) (continued)
|
Description
|
No. of
Shares
|
Value | ||||||
ENERGY — 2.01%
|
||||||||
ConocoPhillips
|
8,000 | $ | 685,840 | |||||
Devon Energy Corporation
|
6,000 | 476,400 | ||||||
EOG Resources, Inc.
|
8,000 | 934,880 | ||||||
Halliburton Company
|
8,000 | 568,080 | ||||||
Kinder Morgan, Inc.
|
12,000 | 435,120 | ||||||
Marathon Oil Corporation
|
9,000 | 359,280 | ||||||
Schlumberger Limited
|
20,000 | 2,359,000 | ||||||
5,818,600 | ||||||||
EXCHANGE-TRADED FUNDS — 5.84%
|
||||||||
iShares Core S&P 500 ETF
|
43,000 | 8,471,000 | ||||||
SPDR S&P 500 ETF Trust
|
43,000 | 8,415,960 | ||||||
16,886,960 | ||||||||
FINANCIALS — 2.79%
|
||||||||
Allstate Corporation (The)
|
4,000 | 234,880 | ||||||
American International Group, Inc.
|
8,000 | 436,640 | ||||||
Bank of America Corporation
|
30,000 | 461,100 | ||||||
Bank of New York Mellon Corporation (The)
|
6,000 | 224,880 | ||||||
BB&T Corporation
|
5,000 | 197,150 | ||||||
BlackRock, Inc. - Class A
|
2,000 | 639,200 | ||||||
JPMorgan Chase & Co.
|
20,000 | 1,152,400 | ||||||
Marsh & McLennan Companies, Inc.
|
4,000 | 207,280 | ||||||
MetLife, Inc.
|
9,000 | 500,040 | ||||||
Morgan Stanley
|
16,000 | 517,280 | ||||||
Prudential Financial, Inc.
|
4,000 | 355,080 | ||||||
Wells Fargo & Company
|
60,000 | 3,153,600 | ||||||
8,079,530 | ||||||||
HEALTH CARE — 2.00%
|
||||||||
Abbott Laboratories
|
13,000 | 531,700 | ||||||
AbbVie Inc.
|
3,000 | 169,320 | ||||||
Actavis plc *
|
2,000 | 446,100 | ||||||
Aetna Inc.
|
6,000 | 486,480 | ||||||
Allergan, Inc.
|
2,500 | 423,050 | ||||||
Description
|
No. of
Shares
|
Value | ||||||
HEALTH CARE (continued)
|
||||||||
Baxter International
|
7,000 | $ | 506,100 | |||||
Boston Scientific Corporation *
|
2,000 | 25,540 | ||||||
Cardinal Health, Inc.
|
6,000 | 411,360 | ||||||
Gilead Sciences, Inc. *
|
14,000 | 1,160,740 | ||||||
McKesson Corporation
|
3,000 | 558,630 | ||||||
Thermo Fisher Scientific Inc.
|
5,000 | 590,000 | ||||||
Wellpoint, Inc.
|
4,500 | 484,245 | ||||||
5,793,265 | ||||||||
INDUSTRIALS — 1.60%
|
||||||||
Deere & Company
|
3,000 | 271,650 | ||||||
Delta Air Lines, Inc.
|
9,000 | 348,480 | ||||||
General Dynamics Corporation
|
3,000 | 349,650 | ||||||
General Electric Company
|
90,000 | 2,365,200 | ||||||
Lockheed Martin Corporation
|
3,000 | 482,190 | ||||||
Union Pacific Corporation
|
8,000 | 798,000 | ||||||
4,615,170 | ||||||||
INFORMATION TECHNOLOGY — 4.12%
|
||||||||
Apple Inc.
|
49,000 | 4,553,570 | ||||||
Cisco Systems, Inc.
|
30,000 | 745,500 | ||||||
Corning, Inc.
|
9,000 | 197,550 | ||||||
Hewlett-Packard Company
|
12,400 | 417,632 | ||||||
Intel Corporation
|
20,000 | 618,000 | ||||||
International Business Machines Corporation
|
8,000 | 1,450,160 | ||||||
Microsoft Corporation
|
22,000 | 917,400 | ||||||
Oracle Corporation
|
40,000 | 1,621,200 | ||||||
QUALCOMM Incorporated
|
14,500 | 1,148,400 | ||||||
Yahoo! Inc. *
|
7,000 | 245,910 | ||||||
11,915,322 | ||||||||
MATERIALS — 0.53%
|
||||||||
Dow Chemical Company (The)
|
14,500 | 746,170 |
Cornerstone Progressive Return Fund
Schedule of Investments – June 30, 2014 (unaudited) (concluded)
|
Description |
No. of
Shares
|
Value | ||||||
MATERIALS (continued)
|
||||||||
LyondellBasell Industries N.V.
|
8,000 | $ | 781,200 | |||||
1,527,370 | ||||||||
TELECOMMUNICATION SERVICES — 0.93%
|
||||||||
Verizon Communications, Inc.
|
55,000 | 2,691,150 | ||||||
UTILITIES — 0.09%
|
||||||||
Exelon Corporation
|
7,000 | 255,360 | ||||||
TOTAL EQUITY SECURITIES
|
||||||||
(cost - $221,287,132)
|
239,699,302 | |||||||
SHORT-TERM INVESTMENTS — 19.27%
|
||||||||
MONEY MARKET FUNDS — 19.27%
|
||||||||
Fidelity Institutional Money Market Government Portfolio - Class I, 0.01%^ (cost - $55,747,943)
|
55,747,943 | 55,747,943 | ||||||
TOTAL INVESTMENTS — 102.14%
|
||||||||
(cost - $277,035,075)
|
295,447,245 | |||||||
LIABILITIES IN EXCESS OF OTHER ASSETS — (2.14)%
|
(6,182,814 | ) | ||||||
NET ASSETS — 100.00%
|
$ | 289,264,431 |
*
|
Non-income producing security.
|
^
|
The rate shown is the 7-day effective yield as of June 30, 2014.
|
Cornerstone Progressive Return Fund
Statement of Assets and Liabilities – June 30, 2014 (unaudited)
|
ASSETS
|
||||
Investments, at value (cost – $277,035,075) (Notes B and C)
|
$ | 295,447,245 | ||
Cash
|
1,204 | |||
Receivables:
|
||||
Investments sold
|
380,906 | |||
Dividends
|
290,019 | |||
Prepaid expenses
|
13,166 | |||
Total Assets
|
296,132,540 | |||
LIABILITIES
|
||||
Payables:
|
||||
Investments purchased
|
6,478,960 | |||
Investment management fees (Note D)
|
216,440 | |||
Trustees’ fees and expenses
|
19,133 | |||
Administration fees (Note D)
|
15,683 | |||
Other accrued expenses
|
137,893 | |||
Total Liabilities
|
6,868,109 | |||
NET ASSETS (applicable to 65,465,673 common shares of beneficial interest)
|
$ | 289,264,431 | ||
NET ASSET VALUE PER SHARE ($289,264,431 ÷ 65,465,673)
|
$ | 4.42 | ||
NET ASSETS CONSISTS OF
|
||||
Paid-in capital
|
$ | 278,773,586 | ||
Accumulated net realized loss on investments
|
(7,921,325 | ) | ||
Net unrealized appreciation in value of investments
|
18,412,170 | |||
Net assets applicable to shares outstanding
|
$ | 289,264,431 |
Cornerstone Progressive Return Fund
Statement of Operations – for the Six Months Ended June 30, 2014 (unaudited)
|
INVESTMENT INCOME
|
||||
Income:
|
||||
Dividends
|
$ | 5,024,978 | ||
Expenses:
|
||||
Investment management fees (Note D)
|
906,199 | |||
Administration fees (Note D)
|
67,965 | |||
Trustees’ fees and expenses
|
42,477 | |||
Accounting fees
|
25,622 | |||
Custodian fees
|
23,252 | |||
Printing
|
21,961 | |||
Legal and audit fees
|
21,820 | |||
Transfer agent fees
|
8,639 | |||
Stock exchange listing fees
|
6,606 | |||
Insurance
|
3,376 | |||
Miscellaneous
|
5,471 | |||
Total Expenses
|
1,133,388 | |||
Net Investment Income
|
3,891,590 | |||
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
|
||||
Net realized gain from investments
|
1,873,038 | |||
Capital gain distributions from regulated investment companies
|
84,077 | |||
Net change in unrealized appreciation in value of investments
|
14,054,124 | |||
Net realized and unrealized gain on investments
|
16,011,239 | |||
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS
|
$ | 19,902,829 |
Cornerstone Progressive Return Fund
Statement of Changes in Net Assets
|
For the Six
Months Ended
June 30, 2014
(Unaudited)
|
For the
Year Ended
December 31,
2013
|
|||||||
INCREASE IN NET ASSETS
|
||||||||
Operations:
|
||||||||
Net investment income
|
$ | 3,891,590 | $ | 3,751,076 | ||||
Net realized gain from investments
|
1,957,115 | 7,731,797 | ||||||
Net change in unrealized appreciation in value of investments
|
14,054,124 | 1,541,738 | ||||||
Net increase in net assets resulting from operations
|
19,902,829 | 13,024,611 | ||||||
Dividends and distributions to shareholders (Note B):
|
||||||||
Net investment income
|
(3,891,590 | ) | (11,482,874 | ) | ||||
Return-of-capital
|
(16,353,427 | ) | (20,156,702 | ) | ||||
Total dividends and distributions to shareholders
|
(20,245,017 | ) | (31,639,576 | ) | ||||
Transactions in common shares of beneficial interest:
|
||||||||
Proceeds from rights offering of 25,574,147 and 13,352,005 shares of newly issued shares, respectively
|
117,896,818 | 64,890,744 | ||||||
Offering expenses associated with rights offering
|
(113,247 | ) | (147,557 | ) | ||||
Proceeds from 700,546 and 824,591 shares newly issued in reinvestment of dividends and distributions, respectively
|
3,010,903 | 3,662,776 | ||||||
Net increase in net assets from common shares of beneficial interest transactions
|
120,794,474 | 68,405,963 | ||||||
Total increase in net assets
|
120,452,286 | 49,790,998 | ||||||
NET ASSETS
|
||||||||
Beginning of period
|
168,812,145 | 119,021,147 | ||||||
End of period
|
$ | 289,264,431 | $ | 168,812,145 |
Cornerstone Progressive Return Fund
Financial Highlights
|
For the Six
Months
Ended June
30, 2014
|
For the Years Ended December 31,
|
|||||||||||||||||||||||
(Unaudited)
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||||||
PER SHARE OPERATING PERFORMANCE
|
||||||||||||||||||||||||
Net asset value, beginning of period
|
$ | 4.31 | $ | 4.76 | $ | 5.00 | $ | 5.90 | $ | 6.28 | $ | 7.16 | ||||||||||||
Net investment income #
|
0.09 | 0.12 | 0.12 | 0.12 | 0.13 | 0.16 | ||||||||||||||||||
Net realized and unrealized gain/(loss) on investments
|
0.36 | 0.28 | 0.62 | (0.11 | ) | 1.03 | 1.42 | |||||||||||||||||
Net increase in net assets resulting from operations
|
0.45 | 0.40 | 0.74 | 0.01 | 1.16 | 1.58 | ||||||||||||||||||
Dividends and distributions to shareholders:
|
||||||||||||||||||||||||
Net investment income
|
(0.09 | ) | (0.38 | ) | (0.40 | ) | (0.61 | ) | (1.14 | ) | (0.16 | ) | ||||||||||||
Return-of-capital
|
(0.37 | ) | (0.65 | ) | (0.70 | ) | (0.63 | ) | (0.40 | ) | (2.30 | ) | ||||||||||||
Total dividends and distributions to shareholders
|
(0.46 | ) | (1.03 | ) | (1.10 | ) | (1.24 | ) | (1.54 | ) | (2.46 | ) | ||||||||||||
Transactions in common shares of beneficial interest:
|
||||||||||||||||||||||||
Anti-dilutive effect due to shares issued:
|
||||||||||||||||||||||||
Rights offering
|
0.12 | 0.18 | 0.12 | 0.31 | — | — | ||||||||||||||||||
Reinvestment of dividends and distributions
|
0.00 | + | 0.00 | + | 0.00 | + | 0.02 | 0.00 | + | — | ||||||||||||||
Total transactions in common shares of beneficial interest
|
0.12 | 0.18 | 0.12 | 0.33 | 0.00 | + | — | |||||||||||||||||
Net asset value, end of period
|
$ | 4.42 | $ | 4.31 | $ | 4.76 | $ | 5.00 | $ | 5.90 | $ | 6.28 | ||||||||||||
Market value, end of period
|
$ | 4.59 | $ | 5.14 | $ | 5.01 | $ | 6.04 | $ | 7.46 | $ | 8.90 | ||||||||||||
Total investment return (a)
|
(0.52 | )%(b) | 28.59 | % | 3.24 | % | (2.12 | )% | 4.73 | % | 65.40 | % | ||||||||||||
RATIOS/SUPPLEMENTAL DATA
|
||||||||||||||||||||||||
Net assets, end of period (000 omitted)
|
$ | 289,264 | $ | 168,812 | $ | 119,021 | $ | 78,435 | $ | 55,277 | $ | 58,738 | ||||||||||||
Ratio of expenses to average net assets, net of fee waivers and fees paid indirectly, if any (c)
|
1.25 | %(e) | 1.33 | % | 1.25 | % | 1.30 | % | 1.47 | % | 1.39 | % | ||||||||||||
Ratio of expenses to average net assets, before fee waivers and fees paid indirectly, if any (c)
|
1.25 | %(e) | 1.33 | % | 1.34 | % | 1.45 | % | 1.61 | % | 1.54 | % | ||||||||||||
Ratio of net investment income to average net assets (d)
|
4.29 | %(e) | 2.70 | % | 2.44 | % | 2.20 | % | 2.20 | % | 2.54 | % | ||||||||||||
Portfolio turnover rate
|
32.98 | %(b) | 101.00 | % | 97.29 | % | 112.69 | % | 117.45 | % | 115.99 | % |
#
|
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 do not include expenses of investment companies in which the Fund invests.
|
(d)
|
Recognition of net investment income by the Fund may be affected by the timing of the declaration of dividends, if any, by investment companies in which the Fund invests.
|
(e)
|
Annualized.
|
Cornerstone Progressive Return Fund
Notes to Financial Statements (unaudited)
|
Cornerstone Progressive Return Fund
Notes to Financial Statements (unaudited) (continued)
|
Cornerstone Progressive Return Fund
Notes to Financial Statements (unaudited) (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
|
$ | 239,699,302 | $ | — | ||||
Short-Term Investments
|
55,747,943 | — | ||||||
Level 2 – Other Significant Observable Inputs
|
— | — | ||||||
Level 3 – Significant Unobservable Inputs
|
— | — | ||||||
Total
|
$ | 295,447,245 | $ | — |
*
|
Other financial instruments include futures, forwards and swap contracts.
|
Cornerstone Progressive Return Fund
Notes to Financial Statements (unaudited) (continued)
|
Shares at beginning of period
|
39,190,980 | |||
Shares newly issued from rights offering
|
25,574,147 | |||
Shares newly issued in reinvestment of dividends and distributions
|
700,546 | |||
Shares at end of period
|
65,465,673 |
Cornerstone Progressive Return Fund
Notes to Financial Statements (unaudited) (concluded)
|
Cost of portfolio investments
|
$ | 277,065,550 | ||
Gross unrealized appreciation
|
$ | 19,437,531 | ||
Gross unrealized depreciation
|
(1,055,836 | ) | ||
Net unrealized appreciation
|
$ | 18,381,695 |
(1)
|
To approve the election of five trustees to hold office until the year 2015 Annual Meeting of Shareholders.
|
Name of Trustees
|
For
|
Withhold
|
Broker Non-Votes
|
|||
Ralph W. Bradshaw
|
31,105,707
|
847,552
|
233,014
|
|||
Edwin Meese III
|
30,631,615
|
1,324,344
|
230,314
|
|||
Scott B. Rogers
|
30,966,263
|
987,196
|
232,814
|
|||
Andrew A. Strauss
|
30,906,532
|
1,046,727
|
233,014
|
|||
Glenn W. Wilcox, Sr.
|
30,970,143
|
985,616
|
230,514
|
|
•
|
without charge, upon request, by calling toll-free (866) 668-6558; and
|
|
•
|
on the website of the Securities and Exchange Commission, http://www.sec.gov.
|
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 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
|
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.
|
Questions?
|
Call (866) 668-6558
|
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.
|
This report, including the financial statements herein, is sent to the shareholders of the Fund for their information. The financial information included herein is taken from the records of the Fund without examination by the independent registered public accountants who do not express an opinion thereon. It is not a prospectus, circular or representation intended for use in the purchase or sale of shares of the Fund or of any securities mentioned in the report.
|
ITEM 2.
|
CODE OF ETHICS.
|
ITEM 3.
|
AUDIT COMMITTEE FINANCIAL EXPERT.
|
ITEM 4.
|
PRINCIPAL ACCOUNTANT FEES AND SERVICES.
|
ITEM 6.
|
SCHEDULE OF INVESTMENTS.
|
(a)
|
Not required
|
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)
|
Not required
|
(b)
|
There has not been a change in any of the Portfolio Managers identified in response to this Item in the registrant's most recent annual report on Form N-CSR.
|
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.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
|
September 2, 2014
|
By (Signature and Title)*
|
/s/ Ralph W. Bradshaw
|
||
Ralph W. Bradshaw, Chairman and President
|
|||
(Principal Executive Officer)
|
|||
Date
|
September 2, 2014
|
||
By (Signature and Title)*
|
/s/ Frank J. Maresca
|
||
Frank J. Maresca, Treasurer
|
|||
(Principal Financial Officer)
|
|||
Date
|
September 2, 2014
|