------------------------- OMB APPROVAL ------------------------- OMB Number: 3235-0578 Expires: April 30, 2010 Estimated average burden hours per response: 10.5 ------------------------- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-22066 --------------------------------------------- Cornerstone Progressive Return Fund -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 305 Madison Avenue, Suite 740 New York, New York 10165 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Frank J. Maresca Ultimus Fund Solutions, LLC 305 Madison Avenue, Suite 740 New York, NY 10165 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: (212) 652-6155 ---------------------------- Date of fiscal year end: December 31, 2009 ---------------------------- Date of reporting period: March 31, 2009 ---------------------------- Form N-Q is to be used by management investment companies other than small business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to Rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles. A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. ss. 3507. ITEM 1. SCHEDULE OF INVESTMENTS. CORNERSTONE PROGRESSIVE RETURN FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) DESCRIPTION NO. OF SHARES VALUE -------------------------------------------------------------------------------- EQUITY SECURITIES - 99.28% CLOSED-END FUNDS - 28.12% Advent/Claymore Enhanced Growth & Income Fund 49,761 $ 382,165 Alpine Global Premier Properties Fund ^ 13,700 40,278 BlackRock Enhanced Capital & Income Fund 20,300 202,797 Blue Chip Value Fund 17,500 39,025 Calamos Strategic Total Return Fund 240,600 1,369,014 Clough Global Allocation Fund ^ 2,300 24,564 Clough Global Equity Fund 74,200 724,934 Clough Global Opportunities Fund 163,000 1,499,600 Dreman/Claymore Dividend & Income Fund ^ 214,755 311,395 Eaton Vance Tax-Advantaged Dividend Income Fund 50,000 446,000 Eaton Vance Tax-Advantaged Global Dividend Income Fund ^ 73,000 584,730 Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund 70,900 667,169 Eaton Vance Tax-Managed Global Diversified Equity Income Fund 124,550 1,071,130 Evergreen Global Dividend Opportunity Fund 500 4,030 First Trust Enhanced Equity Income Fund 9,100 71,162 Gabelli Dividend & Income Trust 45,414 379,207 General American Investors Company, Inc. 27,081 415,693 H&Q Healthcare Investors 37,800 380,646 H&Q Life Sciences Investors 65,000 507,000 ING Risk Managed Natural Resources Fund ^ 42,720 586,118 John Hancock Bank & Thrift Opportunity Fund 6,400 68,800 Liberty All-Star Equity Fund 306,100 896,873 Liberty All-Star Growth Fund 141,200 340,292 LMP Capital & Income Fund, Inc. 141,031 981,576 Madison Strategic Sector Premium Fund 200 1,616 Morgan Stanley High Yield Fund, Inc. 20,600 78,280 NFJ Dividend, Interest & Premium Strategy Fund 177,000 1,770,000 Nuveen Core Equity Alpha Fund 4,000 33,440 Nuveen Diversified Dividend & Income Fund 29,900 159,666 Nuveen Equity Premium & Growth Fund 6,000 57,600 Nuveen Equity Premium Advantage Fund 4,000 39,520 Nuveen Tax-Advantaged Dividend Growth Fund 9,000 62,460 Nuveen Tax-Advantaged Total Return Strategy Fund ^ 7,800 49,764 CORNERSTONE PROGRESSIVE RETURN FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) (CONTINUED) CLOSED-END FUNDS (CONTINUED) Reaves Utility Income Fund (The) ^ 4,907 $ 52,897 Royce Value Trust, Inc. 24,000 168,960 SunAmerica Focused Alpha Growth Fund, Inc. 16,000 142,560 Zweig Fund, Inc. ^ 184,902 460,406 Zweig Total Return Fund, Inc. (The) ^ 65,000 204,100 ------------ 15,275,467 ------------ CONSUMER DISCRETIONARY - 6.27% Amazon.com, Inc. ^ * 5,500 403,920 Best Buy Company, Inc. 2,000 75,920 Coach, Inc. ^ * 4,000 66,800 Comcast Corporation - Class A 15,358 209,483 DIRECTV Group, Inc. (The) ^ * 8,000 182,320 Ford Motor Company ^ * 15,000 39,450 GameStop Corporation - Class A ^ * 2,500 70,050 Gap, Inc. (The) 11,000 142,890 Home Depot, Inc. (The) ^ 9,000 212,040 Kohl's Corporation ^ * 3,695 156,372 Lowe's Companies, Inc. 10,000 182,500 McDonald's Corporation 11,000 600,270 NIKE, Inc. - Class B 5,000 234,450 Omnicom Group, Inc. ^ 2,000 46,800 Staples, Inc. 5,000 90,550 Target Corporation 5,614 193,066 Time Warner Cable, Inc. 2,510 62,250 Time Warner, Inc. ^ 2,000 38,600 TJX Companies, Inc. (The) ^ 2,000 51,280 Walt Disney Company (The) ^ 19,000 345,040 ------------ 3,404,051 ------------ CONSUMER STAPLES - 8.87% Altria Group, Inc. 11,922 190,990 Archer-Daniels-Midland Company 4,000 111,120 Coca-Cola Company (The) 11,000 483,450 Colgate-Palmolive Company 5,000 294,900 CVS Caremark Corporation 8,746 240,427 General Mills, Inc. 3,000 149,640 H.J. Heinz Company ^ 2,000 66,120 Kraft Foods, Inc. - Class A 15,000 334,350 Kroger Company (The) 7,000 148,540 PepsiCo, Inc. 9,000 463,320 Philip Morris International, Inc. ^ 12,337 438,951 Procter & Gamble Company (The) 14,733 693,777 CORNERSTONE PROGRESSIVE RETURN FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) (CONTINUED) CONSUMER STAPLES (CONTINUED) Sysco Corporation ^ 3,000 $ 68,400 Walgreen Company 5,500 142,780 Wal-Mart Stores, Inc. 19,000 989,900 ------------ 4,816,665 ------------ ENERGY - 9.68% Apache Corporation 3,500 224,315 Chesapeake Energy Corporation ^ 4,244 72,403 Chevron Corporation 11,251 756,517 Devon Energy Corporation ^ 2,000 89,380 EOG Resources, Inc. ^ 2,000 109,520 Exxon Mobil Corporation 40,475 2,756,348 Halliburton Company 5,163 79,871 National Oilwell Varco, Inc. * 2,500 71,775 Peabody Energy Corporation 5,000 125,200 Schlumberger Ltd. ^ 12,598 511,731 Southwestern Energy Company * 3,000 89,070 Transocean Ltd. ^ * 2,156 126,859 Williams Companies, Inc. ^ 13,000 147,940 XTO Energy, Inc. ^ 3,139 96,116 ------------ 5,257,045 ------------ FINANCIALS - 7.27% AFLAC, Inc. ^ 4,000 77,440 American Express Company 6,252 85,215 Aon Corporation ^ 3,000 122,460 Bank of America Corporation 29,792 203,181 BB&T Corporation ^ 10,000 169,200 Charles Schwab Corporation (The) ^ 9,000 139,500 Chubb Corporation (The) 3,000 126,960 Franklin Resources, Inc. ^ 5,000 269,350 Goldman Sachs Group, Inc. (The) ^ 3,000 318,060 Hudson City Bancorp, Inc. 5,000 58,450 JPMorgan Chase & Company 35,498 943,537 Loews Corporation 5,000 110,500 Marsh & McLennan Companies, Inc. ^ 3,000 60,750 MetLife, Inc. ^ 3,194 72,727 Morgan Stanley ^ 5,232 119,133 PNC Financial Services Group, Inc. * 4,000 117,160 Public Storage, Inc. ^ 2,500 138,125 State Street Corporation 5,081 156,393 T. Rowe Price Group, Inc. ^ 2,000 57,720 Travelers Companies, Inc. (The) 5,000 203,200 CORNERSTONE PROGRESSIVE RETURN FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) (CONTINUED) FINANCIALS (CONTINUED) U.S. Bancorp 4,000 $ 58,440 Wells Fargo & Company 24,206 344,694 ------------ 3,952,195 ------------ HEALTH CARE - 10.61% Abbott Laboratories ^ 9,229 440,223 Aetna, Inc. 9,000 218,970 Amgen, Inc. ^ * 9,119 451,573 Becton, Dickinson and Company 3,000 201,720 Bristol-Myers Squibb Company 16,418 359,883 Celgene Corporation * 2,000 88,800 Eli Lilly & Company 6,000 200,460 Express Scripts, Inc. ^ * 4,078 188,281 Gilead Sciences, Inc. * 10,000 463,200 Johnson & Johnson 30,000 1,578,000 Medco Health Solutions, Inc. ^ * 5,000 206,700 Medtronic, Inc. 10,000 294,700 Schering-Plough Corporation ^ 10,768 253,586 St. Jude Medical, Inc. * 7,000 254,310 Stryker Corporation 4,000 136,160 UnitedHealth Group, Inc. 5,179 108,397 Wyeth 7,395 318,281 ------------ 5,763,244 ------------ INDUSTRIALS - 7.07% 3M Company 5,067 251,931 Burlington Northern Santa Fe Corporation ^ 2,000 120,300 Caterpillar, Inc. ^ 7,000 195,720 CSX Corporation 3,000 77,550 Danaher Corporation 4,000 216,880 Emerson Electric Company 11,000 314,380 General Electric Company ^ 71,918 727,091 Honeywell International, Inc. ^ 3,236 90,155 Illinois Tool Works, Inc. 3,000 92,550 Lockheed Martin Corporation 4,000 276,120 Norfolk Southern Corporation 3,500 118,125 Raytheon Company 7,161 278,849 United Parcel Service, Inc. - Class B 9,191 452,381 United Technologies Corporation 10,108 434,442 Waste Management, Inc. ^ 7,500 192,000 ------------ 3,838,474 ------------ INFORMATION TECHNOLOGY - 12.75% Agilent Technologies, Inc. * 7,000 107,590 CORNERSTONE PROGRESSIVE RETURN FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) (CONTINUED) INFORMATION TECHNOLOGY (CONTINUED) Apple, Inc. * 4,068 $ 427,628 Automatic Data Processing, Inc. 9,000 316,440 Cisco Systems, Inc. * 46,470 779,302 eBay, Inc. * 7,000 87,920 EMC Corporation ^ * 21,000 239,400 Google, Inc. - Class A * 2,032 707,258 Hewlett-Packard Company 11,265 361,156 Intel Corporation 31,599 475,565 International Business Machines Corporation 9,000 872,010 Linear Technology Corporation 2,500 57,450 Microsoft Corporation 48,913 898,532 Oracle Corporation * 45,555 823,179 Paychex, Inc. ^ 5,000 128,350 QUALCOMM, Inc. 11,308 439,994 Texas Instruments, Inc. 9,000 148,590 Xilinx, Inc. 3,000 57,480 ------------ 6,927,844 ------------ MATERIALS - 2.31% Air Products & Chemicals, Inc. 2,500 140,625 Dow Chemical Company (The) ^ 7,000 59,010 E.I. Du Pont de Nemours & Company 5,500 122,815 Freeport-McMoRan Copper & Gold, Inc. ^ 2,119 80,755 International Paper Company ^ 5,000 35,200 Monsanto Company 6,000 498,600 Nucor Corporation 3,061 116,838 Praxair, Inc. 3,000 201,870 ------------ 1,255,713 ------------ REAL ESTATE INVESTMENT TRUST - 0.33% Simon Property Group, Inc. ^ 5,118 177,288 ------------ TELECOMMUNICATION SERVICES - 2.87% AT&T, Inc. 36,636 923,227 Verizon Communications, Inc. ^ 21,000 634,200 ------------ 1,557,427 ------------ UTILITIES - 3.13% American Electric Power Company, Inc. 7,000 176,820 Dominion Resources, Inc. ^ 9,000 278,910 Duke Energy Corporation 13,000 186,160 Entergy Corporation 2,000 136,180 Exelon Corporation 3,128 141,980 FPL Group, Inc. ^ 7,000 355,110 CORNERSTONE PROGRESSIVE RETURN FUND SCHEDULE OF INVESTMENTS - MARCH 31, 2009 (UNAUDITED) (CONTINUED) UTILITIES (CONTINUED) Questar Corporation 4,000 $ 117,720 Southern Company (The) 10,000 306,200 ------------ 1,699,080 ------------ TOTAL EQUITY SECURITIES (cost $81,242,020) $ 53,924,493 ------------ SHORT-TERM INVESTMENTS - 9.44% MONEY MARKET SECURITY - 0.46% JPMorgan U.S. Government Money Market Fund 250,541 250,541 ------------ PRINCIPAL AMOUNT (000'S) -------------- REPURCHASE AGREEMENTS - 8.98% J.P. Morgan Securities, Inc.+ ++ (Agreement dated 3/31/2009 to be repurchased at $559,429, 0.1562%, 4/1/2009, collateralized by $578,805 in United States Treasury Notes) $ 559 559,427 J.P. Morgan Securities, Inc.+ ++ (Agreement dated 3/31/2009 to be repurchased at $4,318,796, 0.3125%, 4/1/2009, collateralized by $4,447,935 in United States Treasury Notes) 4,319 4,318,758 $ 4,878,185 ------------ TOTAL SHORT-TERM INVESTMENTS (cost - $5,128,726) 5,128,726 TOTAL INVESTMENTS - 108.72% (cost $86,370,746) 59,053,219 ------------ LIABILITIES IN EXCESS OF OTHER ASSETS - (8.72)% (4,735,924) ------------ NET ASSETS - 100.00% $ 54,317,295 ============ ^ Security or a portion thereof is out on loan. * Non-income producing security. + Stated interest rate, before rebate earned by borrower of securities on loan. ++ Represents investment purchased with collateral received for securities on loan. See accompanying notes to schedule of investments. CORNERSTONE PROGRESSIVE RETURN FUND, INC. NOTES TO SCHEDULES OF INVESTMENTS MARCH 31, 2009 (UNAUDITED) ================================================================================ Federal Income Tax Cost: At March 31, 2009 the identified cost for federal income tax purposes, as well as the gross unrealized appreciation from investments for those securities having an excess of value over cost, gross unrealized depreciation from investments for those securities having an excess of cost over value and the net unrealized depreciation from investments were $86,397,198, $968,759, $(28,312,738) and $(27,343,979), respectively. The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements ("FAS 157"), effective January 1, 2008. In accordance with FAS 157, fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 established a three-tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk, for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs to the valuation technique. Inputs may be observable or unobservable. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below. o Level 1 - quoted prices in active markets for identical investments o Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risks, etc.) o Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. The following is a summary of the inputs used as of March 31, 2009 in valuing the Fund's investments carried at value: OTHER INVESTMENTS IN FINANCIAL Valuation Inputs SECURITIES INSTRUMENTS* ---------------------------------------------- ------------ ------------ Level 1 - Quoted Prices $ 59,053,219 $ -- Level 2 - Other Significant Observable Inputs -- -- Level 3 - Significant Unobservable Inputs -- -- ============ ============ Total $ 59,053,219 $ -- ============ ============ * Other financial instruments include futures, forwards and swap contracts. The Fund did not have any assets or liabilities that were measured at fair value on a recurring basis using significant unobservable inputs (Level 3) at March 31, 2009. As of January 1, 2009, the Fund adopted SFAS No. 161, DISCLOSURES ABOUT DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES. This standard amends and expands the disclosure requirements of SFAS No. 133, ACCOUNTING FOR DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, to illustrate how and why an entity uses derivative instruments; how derivative instruments and related hedged items are accounted for under SFAS No. 133; and how derivative instruments and related hedged items affect an entity's financial position, financial performance and cash flows. SFAS No. 161 is effective for financial statements issued for fiscal years beginning after November 15, 2008 and interim periods within those fiscal years. The Fund is exposed to financial market risks, including the valuations of its investment portfolio. For the period ended March 31, 2009, the Fund did not engage in derivative instruments and other hedging activities. Securities valuation policies and other investment related disclosures are herby incorporated by reference to the Fund's annual report previously filed with the Securities and Exchange Commission on the Form N-CSR on March 6, 2009 with a file number 811-22066. Other information regarding the Fund is available in the Fund's most recent annual report filed with the Securities and Exchange Commission on the Form N-CSR on March 6, 2009, file number 811-22066. This information is also available to registered shareholders by calling (800) 937-5449. For general inquiries, please call (513) 326-3597. This information is also available on the website of the Securities and Exchange Commission - https://www.sec.gov ITEM 2. CONTROLS AND PROCEDURES. (a) Based on their evaluation of the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) as of a date within 90 days of the filing date of this report, the registrant's principal executive officer and principal financial officer have concluded that such disclosure controls and procedures are reasonably designed and are operating effectively to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to them by others within those entities, particularly during the period in which this report is being prepared, and that such information is recorded, processed, summarized, and reported on a timely basis. (b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the registrant's last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)): Attached hereto SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. (Registrant) Cornerstone Progressive Return Fund ------------------------------------------------------------------- By (Signature and Title)* /s/ Ralph W. Bradshaw -------------------------------------------------- Ralph W. Bradshaw, President and Chairman (Principal Executive Officer) Date May 21, 2009 ------------------------ Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By (Signature and Title)* /s/ Ralph W. Bradshaw -------------------------------------------------- Ralph W. Bradshaw, President and Chairman (Principal Executive Officer) Date May 21, 2009 ------------------------ By (Signature and Title)* /s/ Frank J. Maresca -------------------------------------------------- Frank J. Maresca, Treasurer (Principal Financial Officer) Date May 21, 2009 ------------------------ * Print the name and title of each signing officer under his or her signature.