Cornerstone Progressive Return Fund (NYSEMKT: CFP) is a diversified, closed-end management investment company that seeks to deliver total return through a combination of capital appreciation and current income. Organized as a Maryland corporation, the Fund pursues its objectives primarily by investing in convertible securities, including corporate convertible bonds and convertible preferred stocks, alongside select equity positions. Its balanced approach enables investors to gain exposure to both income-generating instruments and growth-oriented equities within a single vehicle.
In managing its portfolio, the Fund combines fundamental credit research with equity valuation analysis to identify convertible securities that offer upside participation in equity markets while providing bond-like downside protection. The investment team may also hold common stocks directly, as well as investment-grade and high-yield fixed-income instruments, to enhance yield and diversification. Sector focus is flexible, allowing the Fund to overweight areas such as technology, healthcare and industrials when market conditions and valuation opportunities align with the Fund’s risk-return objectives.
Since its launch in March 2004, Cornerstone Progressive Return Fund has maintained an active management style, utilizing tactical asset allocation and security-level selection to navigate changing market environments. The Fund pays monthly cash distributions to shareholders, drawing from income generated by its portfolio and, when needed, from net investment gains. Its capital structure, which includes the use of leverage, is designed to enhance total return potential while subject to oversight by an independent board of trustees.
Governance is provided by an independent board of trustees, while day-to-day investment decisions are delegated to Cornerstone Advisors Inc., a New York–based investment management firm. The Fund benefits from the research capabilities and risk-management infrastructure of its adviser’s broader platform, tapping a team of seasoned portfolio managers and credit analysts. Though the bulk of its holdings are U.S.-based issuers, the Fund also may allocate a portion of its assets to non-U.S. convertibles and equities, offering shareholders access to global growth opportunities.
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