Fund Description: The Cornerstone Total Return Fund, Inc. is a closed-end, non-diversified investment company. INVESTMENT OBJECTIVE: The Fund's primary investment objective is to seek capital appreciation through investments in common stocks,preferred stocks and securities convertible into common stocks that trade on a U.S. securities exchange or over the counter. Current income is a secondary objective through investment in U.S. debt securities. FUND STRATEGY: The Fund seeks to achieve its investment objectives by investing primarily in equity securities of U.S. companies and U.S. dollar denominated debt securities which Fund Management believes have demonstrated fundamental investment value and favorable growth and income prospects. The Fund intends its investment portfolio, under normal market conditions, to consist principally of the equity securities of large, mid and small-capitalization companies. Equity securities in which the Fund may invest include common and preferred stocks, convertible securities, warrants and other securities having the characteristics of common stocks, such as ADRs and IDRs.The Fund may invest in the securities of issuers that it determines to be suitable for investment by the Fund regardless of their rating, provided, however, that the Fund may not invest in debt securities that are determined by Fund management to be rated below "BBB" by S&P or Moody's. FUND MANAGEMENT: The Fund is managed by Cornerstone Advisors, Inc. of Ashville NC. with Bear Stearns Fund Management Inc. as the Fund's Administrator.