CORNERCAP GROWTH FUND
SEMI-ANNUAL REPORT TO SHAREHOLDERS
A Series of
The CornerCap Group of Funds
A "Series" Investment Company
FOR THE SIX MONTHS ENDED
SEPTEMBER 30, 1995<PAGE>
<TABLE>
CORNERCAP GROWTH FUND
SCHEDULE OF PORTFOLIO INVESTMENTS
September 30, 1995 (Unaudited)
<CAPTION>
Number of Market
Shares Description Value
<S> <C> <C> <C>
COMMON STOCK: 90.94%
AEROSPACE: 7.13%
2,300 Raytheon Company $ 195,500
4,200 Rockwell International 198,450
3,000 Textron 204,750
598,700
BUILDING MATERIALS: 4.47%
12,700 Apogee Enterprises * 185,738
10,700 Southdown, Incorporated * 188,588
374,325
CHEMICALS: 2.34%
8,000 Wellman, Incorporated 196,000
COMMUNICATIONS: 2.20%
4,450 Telefonia de Espana ADR 184,119
COMPUTERS: 3.02%
12,050 Bantec, Incorporated * 253,050
DISTRIBUTOR/WHOLESALER: 2.21%
20,850 Handleman Company 185,044
ENGINEERING/CONSTRUCTION: 2.14%
6,700 Sequa Corporation Class A * 179,225
FINANCIAL: 9.08%
16,000 California Federal Bank * 252,000
3,800 City National Corporation 50,350
11,100 Countrywide Credit 258,075
5,250 Salomon, Incorporated 200,813
761,238
FOOD PROCESSING: 2.56%
23,800 Morningstar Group, Incorporated * 214,200
<CAPTION>
Number of Market
Shares Description Value
<S> <C> <C> <C>
FURNITURE: 4.50%
21,100 Culp, Incorporated 216,275
12,367 Ladd Furniture Company 160,771
377,046
HOMEBUILDERS: 2.15%
11,600 Ryland Group, Inc. 179,800
INSURANCE: 14.15%
5,650 American Banker 210,463
10,850 Crawford and Company Class B 172,244
18,742 Gainsco, Incorporated 167,506
5,150 Orion Capital Corporation 228,531
4,450 Providian Corporation 184,675
8,950 Washington National Corporation 222,631
1,186,050
MACHINERY/DIVERSIFIED: 2.26%
5,200 Standex International Corporation 189,150
MANUFACTURING: 6.24%
9,350 Furon Company 175,313
14,550 Gencorp 154,593
26,200 Windmere Corporation 193,225
523,131
METALS: 4.14%
11,600 Handy and Harman 174,000
5,450 International Aluminum, Incorporated 173,038
347,038
PACKAGING/CONTAINERS: 2.33%
15,050 Sealright Company 195,650
RETAIL: 6.97%
9,900 Helen of Troy Corporation * 181,913
17,400 Huffy Corporation 197,925
16,500 Shopko Store, Incorporated 204,187
584,025
<S>Number of Market
Shares Description Value
<C> <C> <C> <C>
TEXTILES: 4.70%
9,050 Kellwood Company 186,656
38,600 Tultex Corporation * 207,475
394,131
TRANSPORTATION: 4.37%
10,400 M S Carriers, Incorporated * 166,400
28,550 OMI Corporation * 199,850
366,250
TOBACCO: 1.93%
5,650 United States Tobacco, Incorporated 161,731
UTILITY/ELECTRIC: 2.05%
4,900 United Illuminating Company 172,113
Total Common Stock:
(Cost: $7,082,146) 7,622,016
Principal Amount SHORT TERM INVESTMENTS:
7.68%
643,643 Wachovia Bank 643,643
Total Short Term Investments:
(Cost: $643,643) 643,643
TOTAL INVESTMENTS:
(Cost: $7,725,789) 98.62% 8,265,659
Other Assets, Net 1.38% 115,647
100.00% $8,381,306
<FN>
* Non-income producing security
ADR-Security represented is held by the custodian bank in the form of American Depository
Receipt.
See Notes to Financial Statements
</TABLE>
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
September 30, 1995 (Unaudited)
<CAPTION>
ASSETS
<S> <C> <C>
Investments at market value (identified cost of $7,725,789)$8,265,659
Receivables
Dividend 14,493
Interest 1,826
Investment securities sold 186,693 203,012
Other assets 2,340
TOTAL ASSETS 8,471,011
LIABILITIES
Investment securities purchased70,098
Accrued expenses 19,608
TOTAL LIABILITIES 89,705
NET ASSETS $8,381,306
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($8,381,306 / 929,967 shares outstanding) $ 9.01
<CAPTION>
At September 30, 1995, net assets consisted of:
<S> <C>
Par value @ $.001 $ 930
Capital in excess of par 8,807,676
Accumulated undistributed net income (5,160)
Accumulated undistributed realized loss (962,009)
Net unrealized appreciation 539,869
Net assets $8,381,306
<FN>
See Notes to Financial Statements/TABLE
<PAGE>
<TABLE>
STATEMENT OF OPERATIONS
September 30, 1995 (Unaudited)
<CAPTION>
INVESTMENT INCOME
<S>Income
Dividend <C>$86,133
Interest 8,864
Total Income $ 94,997
Expenses
Advisory fee 39,716
Transfer agent fees 5,285
Fund accounting fees 6,375
Insurance 1,128
Administrative fees 4,510
Trustees fees 3,838
Legal 8,628
Custodian fees 2,649
Registration and filing fees7,446
Audit fees 9,000
Printing 3,813
Miscellaneous 1,752 94,140
<S>Less reimbursement by Advisor <C>(20,487)
Total expenses 73,653
Net investment income 21,344
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain on investments 24,581
Unrealized gain on investments 303,037
Net realized and unrealized gain on investments 327,618
Net increase in net assets resulting from operations$348,962
<FN>
See Notes to Financial Statements
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<CAPTION> Six months
ended
September 30, 1995 Year ended
(Unaudited) March 31, 1995
OPERATIONS
<S> <C> <C>
Net investment income $ 21,344 $ 37,222
Net realized gain on investments 24,581 352,197
Increase in unrealized
appreciation of investments 303,037 243,324
Increase in net assets
resulting from operations 348,962 632,743
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income
($-0- and $.02, respectively) - 0 - (13,747)
CAPITAL SHARE TRANSACTIONS:
Net increase in net assets
resulting from
capital share transactions * 733,696 2,450,675
Net increase in net assets 1,082,658 3,069,671
Net assets at beginning of period 7,298,648 4,228,977
NET ASSETS at the end of period $8,381,306 $7,298,648
* A summary of capital share transactions follows:
<CAPTION>
Six months ended Year ended
September 30, 1995 March 31, 1995
<S> <C> <C> <C> <C>
Shares Value Shares Value
Shares sold 121,089$1,073,246 325,076$2,678,184
Shares reinvested - 0 - - 0 - 1,692 13,348
Shares redeemed (38,434) (339,550) (29,512) (240,857)
Net increase 82,655$ 733,696 297,256$2,450,675
<FN>
See Notes to Financial Statements
</TABLE>
<TABLE>
FINANCIAL HIGHLIGHTS
For a Share Outstanding Throughout Each Period
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Six month
ended
September 30,
1995 Years ended March 31,
(Unaudited)1995 1994 1993 1992 1991
Per Share Operating Performance
Net asset value,
beginning of period $8.61 $7.69 $7.58 $7.60 $6.45 $6.96
Income from investment operations -
Net investment income (loss) .02 .05 .02 .23 (.08)(.27)
Net realized and unrealized gain
(loss) on investments .38 .89 .11 (.25) 1.23 (.10)
Total from investment income .40 .94 .13 (.02) 1.15 (.37)
Less distributions -
Distributions from net
investment income -0- .02 .02 -0- -0- .14
Net asset value, end of period $9.01 $8.61 $7.69 $7.58 $7.60$6.45
Total Return 4.59% 12.25% 1.71% (.26)% 17.83%(5.39)%
Ratios/Supplemental Data
Net assets,
end of period (000's)$8,381 $7,299 $4,229 $3,042 $1,084 $1,106
Ratios to average net assets
Expenses .97% 1.87% 2.00% 2.00% 2.14% 7.77%
Net investment income (loss) .28% .70% .13% .40% (.29)%(3.80)%
Portfolio turnover rate11.05% 55.12% 35.58% 83.40% 91.62%125.24%
<FN>
See Notes to Financial Statements
</TABLE>
<PAGE>
NOTES TO THE FINANCIAL STATEMENTS
September 30, 1995
(1) ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
CornerCap Growth Fund (the "Fund") was organized on January 6,
1986 as aMassachusetts Business Trust and is registered under the
Investment Company Act of 1940 as a diversified open-end
management investment company. Investment operations commenced
on July 17, 1986. The following is a summary of significant
accounting policies followed by the Fund in the preparation of
the financial statements. The policies are in conformity with
generally accepted accounting principles.
A. Security Valuation - Portfolio securities that are
listed on national securities exchanges or the NASDAQ National
Market System are valued at the last sale price as of 4:15 p.m.
Eastern time, or in the absence of recorded sales, at the average
of readily available closing bid and asked prices on such
exchanges or such System. Unlisted securities that are not
included in such System are valued at the mean of the quoted bid
and asked prices in the over-the-counter market. Securities and
other assets for which market quotations are not readily
available are valued at fair value as determined in good faith by
the Advisor under procedures established by and under the general
supervision and responsibility of the Fund's Board of Trustees.
Short-term investments are valued at amortized cost, if their
original maturity was 60 days or less, or by amortizing the
values as of the 61st day prior to maturity, if their original
term to maturity exceeded 60 days.
B. Security Transactions, Investment Income and Other -
Security transactions are recorded on the next business date
after trade date. Realized gains and losses on sales of
investments are calculated on the identified cost basis.
Dividend income is recorded on the ex-dividend date and interest
income is recorded on the accrual basis.
C. Change in Accounting for Distributions to the Shareholders
- - Effective April 1, 1993, the Fund adopted Statement of
Position 93-2: "Determination, Disclosure, and Financial
Statement Presentation of Income, Capital Gain, and
Return of Capital Distributions by Investment Companies". As a
result, the Fund changed the classification of distributions to
shareholders to better disclose the differences between financial
statement amounts and distributions determined in accordance with
income tax regulations.
(2) TRANSACTIONS WITH AFFILIATES
INVESTMENT ADVISORY AND ADMINISTRATION AGREEMENTS
The Fund has an investment advisory agreement with the
Advisor, pursuant to which the Advisor receives a fee, computed
daily and payable monthly, at an annual rate of 1.0% of the
average daily net assets.
The Advisor provides continuous supervision of the investment
portfolio and pays the cost of compensation of the officers of
the Fund, occupancy and certain clerical and administrative costs
involved in the day to day operations of the Fund. The Fund
bears all other costs and expenses.
Under the investment advisory agreement, if the aggregate
expenses of the Fund (including the fees to the Advisor but
excluding taxes, interest, brokerage fees and commissions,
distribution fee and extraordinary expenses) exceed the
limitations imposed by state securities administrators, the
Advisor will reduce its fee by the amount of such excess.
In addition, the Advisor has undertaken to pay fund expenses
in excess of 2.0% of average net assets for the period ended
September 30, 1995. For the period ended September 30, 1995, the
Advisor waived the Advisory fee of $20,487.
DISTRIBUTION AGREEMENT AND PLAN
The Fund has adopted a Distribution Plan pursuant to which
the Fund reimburses the Advisor for marketing expenses incurred
in distributing shares of the Fund, primarily the cost of
printing sales material. This expenses is limited to 1/4 of 1%
of the Fund's average net assets. For the period
ending September 30, 1995, no such reimbursements were made.
(3) PURCHASES AND SALES OF SECURITIES
For the period ended September 30, 1995, the cost of
purchases and the proceeds from sales of securities, excluding
short-term securities, were $1,079,841 and $844,401,
respectively.
(4) FEDERAL INCOME TAXES
It is the Fund's policy to meet the requirements of the
Internal Revenue Code Applicable to regulated investment
companies and to distribute all of its taxable net income to its
shareholders. In addition, the Fund intends to pay
distributions as required to avoid imposition of excise tax.
Therefore, no federal income tax provision is required.
For Federal income tax purposes, the Fund had accumulated
realized net capital losses of $982,346 as of March 31, 1995, of
which $515,716 expires in 1997 and $466,630 expires in 1998,
respectively.
The Fund will resume annual capital gains distributions in
future years to the extent net capital gains are realized in
excess of available carryovers.
<TABLE> <S> <C>
<ARTICLE> 6
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1995
<PERIOD-END> SEP-30-1995
<INVESTMENTS-AT-COST> 7,725,789
<INVESTMENTS-AT-VALUE> 8,265,659
<RECEIVABLES> 203,012
<ASSETS-OTHER> 2,340
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 8,471,011
<PAYABLE-FOR-SECURITIES> 70,098
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 19,608
<TOTAL-LIABILITIES> 89,705
<SENIOR-EQUITY> 930
<PAID-IN-CAPITAL-COMMON> 8,807,676
<SHARES-COMMON-STOCK> 929,967
<SHARES-COMMON-PRIOR> 847,312
<ACCUMULATED-NII-CURRENT> 5,160
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 962,009
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 539,869
<NET-ASSETS> 8,381,306
<DIVIDEND-INCOME> 86,133
<INTEREST-INCOME> 8,864
<OTHER-INCOME> 0
<EXPENSES-NET> 73,653
<NET-INVESTMENT-INCOME> 21,344
<REALIZED-GAINS-CURRENT> 24,581
<APPREC-INCREASE-CURRENT> 303,037
<NET-CHANGE-FROM-OPS> 348,962
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 121,089
<NUMBER-OF-SHARES-REDEEMED> 38,434
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> 1,082,658
<ACCUMULATED-NII-PRIOR> 37,222
<ACCUMULATED-GAINS-PRIOR> 352,197
<OVERDISTRIB-NII-PRIOR> 13,747
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 39,716
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 94,140
<AVERAGE-NET-ASSETS> 7,611
<PER-SHARE-NAV-BEGIN> 8.61
<PER-SHARE-NII> .02
<PER-SHARE-GAIN-APPREC> .38
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 9.01
<EXPENSE-RATIO> .97
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> .08
</TABLE>
