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 811-02363

Cornerstone Total Return Fund, Inc.
(Exact name of registrant as specified in charter)

48 Wall Street     New York, NY
10005
(Address of principal executive offices)
(Zip code)

Frank J. Maresca

AST Fund Solutions, LLC   48 Wall Street   New York, NY 10005

(Name and address of agent for service)

Registrant's telephone number, including area code: (866) 668-6558

Date of fiscal year end: December 31

Date of reporting period: March 31, 2016

Item 1. Schedule of Investments.
 

CORNERSTONE TOTAL RETURN FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31. 2016 (Unaudited)
 
Description
 
No. of Shares
   
Value
 
EQUITY SECURITIES - 99.06%
           
CLOSED-END FUNDS - 24.75%
 
CONVERTIBLE SECURITIES - 1.45%
 
AllianzGI Convertible & Income Fund
   
57,301
   
$
317,448
 
AllianzGI Convertible & Income Fund II
   
260,000
     
1,268,800
 
Ellsworth Growth and Income Fund Ltd.
   
1,330
     
10,108
 
             
1,596,356
 
CORE - 2.63%
 
General American Investors Company, Inc.
   
42,500
     
1,327,275
 
Guggenheim Equal Weight Enhanced Equity Income Fund
   
10,800
     
174,420
 
Liberty All-Star Equity Fund
   
136,300
     
677,411
 
Royce Micro-Cap Trust, Inc.
   
97,800
     
684,600
 
Sprott Focus Trust, Inc.
   
3,500
     
21,315
 
             
2,885,021
 
DEVELOPED MARKET - 0.31%
 
Aberdeen Australia Equity Fund, Inc.
   
61,289
     
340,767
 
                 
EMERGING MARKETS - 0.04%
 
Aberdeen Chile Fund, Inc.
   
753
     
4,525
 
Turkish Investment Fund, Inc. (The)
   
4,455
     
40,852
 
             
45,377
 
GENERAL BOND - 0.09%
 
Deutsche Multi-Market Income Trust
   
12,493
     
99,069
 
                 
GLOBAL - 6.06%
 
Alpine Global Dynamic Dividend Fund
   
48,211
     
411,240
 
Alpine Global Total Dynamic Dividend Fund
   
262,952
     
1,972,140
 
Clough Global Allocation Fund
   
800
     
9,280
 
Clough Global Equity Fund
   
23,043
     
250,708
 
Clough Global Opportunities Fund
   
3,800
     
36,404
 
Gabelli Global Small and Mid Cap Value Trust (The) *
   
25,580
     
270,125
 
Gabelli Global Utility & Income Trust (The)
   
17,839
     
319,318
 
GDL Fund (The)
   
49,446
     
493,966
 
Lazard Global Total Return and Income Fund, Inc.
   
24,435
     
303,727
 
Lazard World Dividend & Income Fund, Inc.
   
65,509
     
591,546
 
Royce Global Value Trust, Inc.
   
2,685
     
19,788
 
Voya Infrastructure, Industrials and Materials Fund
   
125,259
     
1,561,980
 
Wells Fargo Advantage Global Dividend Opportunity Fund
   
71,600
     
427,452
 
             
6,667,674
 
INCOME & PREFERRED STOCK - 0.71%
 
LMP Capital and Income Fund Inc.
   
62,830
     
777,207
 
                 
NATURAL RESOURCES - 1.98%
 
BlackRock Resources & Commodities Strategy Trust
   
266,250
     
1,919,663
 
Tortoise Energy Independence Fund, Inc.
   
11,620
     
132,817
 
Voya Natural Resources Equity Income Fund
   
21,600
     
121,824
 
             
2,174,304
 
 
See accompanying notes to schedule of investments.


CORNERSTONE TOTAL RETURN FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31. 2016 (Unaudited)
 
Description
   
No. of Shares
     
Value
 
OPTION ARBITRAGE/OPTIONS STRATEGIES - 2.25%
 
AllianzGI NFJ Dividend, Interest & Premium Strategy Fund
   
189,900
    $
2,328,174
 
Voya Asia Pacific High Dividend Equity Income Fund
   
2,612
     
24,135
 
Voya International High Dividend Equity Income Fund
   
18,671
     
120,241
 
             
2,472,550
 
PACIFIC EX JAPAN - 0.04%
 
Aberdeen Greater China Fund, Inc.
   
1,408
     
11,686
 
The Thai Fund, Inc.
   
4,123
     
30,923
 
             
42,609
 
REAL ESTATE - 5.47%
 
Alpine Global Premier Properties Fund
   
220,193
     
1,230,879
 
CBRE Clarion Global Real Estate Income Fund
   
146,008
     
1,140,322
 
Cohen & Steers Preferred Securities and Income Fund, Inc.
   
112,200
     
2,122,824
 
Cohen & Steers Quality Income Realty Fund, Inc.
   
8,000
     
99,280
 
Neuberger Berman Real Estate Securities Income Fund Inc.
   
191,405
     
974,251
 
Nuveen Diversified Dividend and Income Fund
   
5,957
     
65,170
 
Nuveen Real Estate Income Fund
   
6,200
     
67,208
 
RMR Real Estate Income Fund
   
16,381
     
317,136
 
             
6,017,070
 
SECTOR EQUITY - 0.85%
 
Gabelli Healthcare & WellnessRx Trust (The)
   
18,781
     
184,805
 
GAMCO Natural Resources, Gold & Income Trust
   
63,130
     
415,395
 
Nuveen Real Asset Income and Growth Fund
   
22,013
     
338,340
 
             
938,540
 
UTILITY - 2.87%
 
Cohen & Steers Infrastructure Fund, Inc.
   
53,416
     
1,058,171
 
Duff & Phelps Global Utility Income Fund Inc.
   
87,400
     
1,390,534
 
Macquarie Global Infrastructure Total Return Fund Inc.
   
35,295
     
709,077
 
             
3,157,782
 
                 
TOTAL CLOSED-END FUNDS
           
27,214,326
 
                 
CONSUMER DISCRETIONARY - 10.05%
               
Amazon.com, Inc. *
   
2,000
     
1,187,280
 
Comcast Corporation - Class A
   
27,262
     
1,665,163
 
Dollar General Corporation
   
3,000
     
256,800
 
D.R. Horton, Inc.
   
2,500
     
75,575
 
Home Depot, Inc. (The)
   
13,500
     
1,801,305
 
L Brands, Inc.
   
2,000
     
175,620
 
Lowe's Companies, Inc.
   
9,000
     
681,750
 
Marriott International, Inc. - Class A
   
3,000
     
213,540
 
Nike, Inc. - Class B
   
8,000
     
491,760
 
O’Reilly Automotive, Inc. *
   
1,000
     
273,660
 
Priceline Group Inc. (The) *
   
500
     
644,480
 
Ross Stores, Inc.
   
4,000
     
231,600
 
Royal Caribbean Cruises Ltd.
   
2,000
     
164,300
 
Starbucks Corporation
   
14,000
     
835,800
 
TJX Companies, Inc. (The)
   
7,000
     
548,450
 
Twenty-First Century Fox, Inc.
   
2,500
     
70,500
 
Walt Disney Company (The)
   
17,500
     
1,737,925
 
             
11,055,508
 
 
See accompanying notes to schedule of investments.


CORNERSTONE TOTAL RETURN FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31. 2016 (Unaudited)
 
Description
   
No. of Shares
     
Value
 
CONSUMER STAPLES - 8.37%
               
Altria Group, Inc.
   
21,000
    $
1,315,860
 
Colgate-Palmolive Company
   
3,000
     
211,950
 
ConAgra Foods, Inc.
   
2,000
     
89,240
 
Constellation Brands, Inc.
   
2,500
     
377,725
 
Costco Wholesale Corporation
   
5,000
     
787,900
 
CVS Caremark Corporation
   
13,200
     
1,369,236
 
General Mills, Inc.
   
3,000
     
190,050
 
Kimberly-Clark Corporation
   
2,000
     
269,020
 
Kroger Co. (The)
   
10,000
     
382,500
 
Mondelēz International, Inc. - Class A
   
9,800
     
393,176
 
Monster Beverage Corporation *
   
2,000
     
266,760
 
PepsiCo, Inc.
   
3,000
     
307,440
 
Reynolds American Inc.
   
14,000
     
704,340
 
Sysco Corporation
   
2,000
     
93,460
 
Walgreens Boots Alliance, Inc.
   
12,000
     
1,010,880
 
Wal-Mart Stores, Inc.
   
21,000
     
1,438,290
 
             
9,207,827
 
ENERGY - 4.10%
               
Chevron Corporation
   
9,000
     
858,600
 
Exxon Mobil Corporation
   
26,000
     
2,173,340
 
Occidental Petroleum Corporation
   
3,900
     
266,877
 
Phillips 66
   
6,000
     
519,540
 
Schlumberger Limited
   
4,500
     
331,875
 
Valero Energy Corporation
   
5,500
     
352,770
 
             
4,503,002
 
EXCHANGE-TRADED FUNDS - 0.56%
               
SPDR S&P 500 ETF Trust
   
3,000
     
616,680
 
                 
FINANCIALS - 11.73%
               
Aflac Incorporated
   
3,000
     
189,420
 
Allstate Corporation (The)
   
4,000
     
269,480
 
American Express Company
   
10,000
     
614,000
 
American International Group, Inc.
   
6,000
     
324,300
 
American Tower Corporation
   
4,000
     
409,480
 
Aon plc
   
3,500
     
365,575
 
Berkshire Hathaway Inc. - Class B *
   
14,000
     
1,986,320
 
BlackRock, Inc. - Class A
   
2,000
     
681,140
 
Capital One Financial Corporation
   
5,500
     
381,205
 
Charles Schwab Corporation (The)
   
13,000
     
364,260
 
Chubb Limited
   
5,203
     
619,937
 
Discover Financial Services
   
4,000
     
203,680
 
Intercontinental Exchange, Inc.
   
1,000
     
235,140
 
JPMorgan Chase & Co.
   
22,200
     
1,314,684
 
Marsh & McLennan Companies, Inc.
   
5,000
     
303,950
 
McGraw Hill Financial, Inc.
   
3,000
     
296,940
 
Moody’s Corporation
   
2,000
     
193,120
 
PNC Financial Services Group, Inc. (The)
   
5,000
     
422,850
 
 
See accompanying notes to schedule of investments.


CORNERSTONE TOTAL RETURN FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31. 2016 (Unaudited)
 
Description
   
No. of Shares
     
Value
 
State Street Corporation
   
4,000
    $
234,080
 
SunTrust Banks, Inc.
   
5,000
     
180,400
 
Travelers Companies, Inc. (The)
   
3,000
     
350,130
 
T. Rowe Price Group, Inc.
   
2,500
     
183,650
 
U.S. Bancorp
   
17,000
     
690,030
 
Wells Fargo & Company
   
43,000
     
2,079,480
 
             
12,893,251
 
HEALTH CARE - 10.73%
               
Abbott Laboratories
   
10,000
     
418,300
 
AbbVie Inc.
   
11,000
     
628,320
 
Aetna Inc.
   
3,000
     
337,050
 
Allergan plc *
   
3,104
     
831,965
 
AmerisourceBergen Corporation
   
2,000
     
173,100
 
Amgen Inc.
   
7,000
     
1,049,510
 
Anthem, Inc.
   
2,000
     
277,980
 
Baxter International Inc.
   
4,000
     
164,320
 
Becton, Dickinson and Co.
   
2,000
     
303,640
 
Biogen Inc. *
   
1,500
     
390,480
 
Cardinal Health, Inc.
   
4,000
     
327,800
 
Celgene Corporation *
   
7,000
     
700,630
 
Cerner Corporation *
   
4,000
     
211,840
 
Cigna Corporation
   
2,000
     
274,480
 
Gilead Sciences, Inc.
   
2,000
     
183,720
 
Johnson & Johnson
   
8,500
     
919,700
 
McKesson Corporation
   
3,000
     
471,750
 
Merck & Company, Inc.
   
27,000
     
1,428,570
 
Mylan N.V. *
   
4,000
     
185,400
 
Regeneron Pharmaceuticals, Inc. *
   
1,000
     
360,440
 
Stryker Corporation
   
4,000
     
429,160
 
Thermo Fisher Scientific Inc.
   
4,000
     
566,360
 
UnitedHealth Group Incorporated
   
9,000
     
1,160,100
 
             
11,794,615
 
INDUSTRIALS - 7.03%
               
      3M Company    
6,000
     
999,780
 
Danaher Corporation
   
7,000
     
664,020
 
Delta Air Lines, Inc.
   
8,000
     
389,440
 
FedEx Corporation
   
3,000
     
488,160
 
General Dynamics Corporation
   
3,000
     
394,110
 
General Electric Company
   
20,000
     
635,800
 
Honeywell International Inc.
   
8,000
     
896,400
 
Illinois Tool Works Inc.
   
4,000
     
409,760
 
Lockheed Martin Corporation
   
3,500
     
775,250
 
Northrop Grumman Corporation
   
2,000
     
395,800
 
Raytheon Company
   
3,000
     
367,890
 
Southwest Airlines Co.
   
7,000
     
313,600
 
United Parcel Service, Inc.
   
6,100
     
643,367
 
Waste Management, Inc.
   
6,000
     
354,000
 
             
7,727,377
 
 
See accompanying notes to schedule of investments.


CORNERSTONE TOTAL RETURN FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31. 2016 (Unaudited)
 
Description
   
No. of Shares
     
Value
 
INFORMATION TECHNOLOGY - 15.73%
               
Accenture plc - Class A
   
2,000
    $
230,800
 
Adobe Systems Incorporated
   
4,000
     
375,200
 
Alphabet Inc. - Class A *
   
1,000
     
762,900
 
Alphabet Inc. - Class C *
   
7,002
     
5,216,140
 
Apple Inc.
   
26,000
     
2,833,740
 
Automatic Data Processing, Inc.
   
4,500
     
403,695
 
Broadcom Limited
   
1,000
     
154,500
 
Cisco Systems, Inc.
   
20,000
     
569,400
 
Cognizant Technology Solutions Corporation *
   
6,000
     
376,200
 
eBay Inc. *
   
4,000
     
95,440
 
Facebook, Inc. *
   
8,000
     
912,800
 
Fiserv, Inc. *
   
3,000
     
307,740
 
Intel Corporation
   
30,000
     
970,500
 
MasterCard Incorporated
   
4,000
     
378,000
 
Microsoft Corporation
   
24,000
     
1,325,520
 
Oracle Corporation
   
28,700
     
1,174,117
 
PayPal Holdings, Inc. *
   
4,000
     
154,400
 
salesforce.com, inc. *
   
5,000
     
369,150
 
Visa Inc. - Class A
   
9,000
     
688,320
 
             
17,298,562
 
MATERIALS - 2.38%
               
Air Products & Chemicals, Inc.
   
2,000
     
288,100
 
Dow Chemical Company (The)
   
11,000
     
559,460
 
Ecolab Inc.
   
3,000
     
334,560
 
E. I. du Pont de Nemours and Company
   
4,000
     
253,280
 
International Paper Company
   
3,300
     
135,432
 
LyondellBasell Industries N.V.
   
5,000
     
427,900
 
PPG Industries, Inc.
   
3,000
     
334,470
 
Sherwin-Williams Company (The)
   
1,000
     
284,670
 
             
2,617,872
 
TELECOMMUNICATION SERVICES - 1.75%
               
AT&T, Inc.
   
16,103
     
630,755
 
Verizon Communications, Inc.
   
24,000
     
1,297,920
 
             
1,928,675
 
UTILITIES - 1.88%
               
American Electric Power Company, Inc.
   
5,000
     
332,000
 
Dominion Resources, Inc.
   
3,000
     
225,360
 
Duke Energy Corporation
   
3,600
     
290,448
 
Edison International
   
2,000
     
143,780
 
NextEra Energy, Inc.
   
4,000
     
473,360
 
PPL Corporation
   
5,000
     
190,350
 
Public Service Enterprises Group, Inc.
   
4,000
     
188,560
 
Xcel Energy Inc.
   
5,500
     
230,010
 
             
2,073,868
 
TOTAL EQUITY SECURITIES (cost - $95,723,454)
           
108,931,563
 
 
See accompanying notes to schedule of investments.


CORNERSTONE TOTAL RETURN FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31. 2016 (Unaudited)
 
Description    
No. of Shares
     
Value
 
SHORT-TERM INVESTMENT - 0.87%
               
MONEY MARKET FUND - 0.87%
               
Fidelity Institutional Money Market Government Portfolio - Class I, 0.23%^ (cost - $953,561)
   
953,561
    $
953,561
 
                 
TOTAL INVESTMENTS - 99.93% (cost - $96,677,015)
           
109,885,124
 
                 
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.07%
           
76,338
 
                 
NET ASSETS - 100.00%
         
$
109,961,462
 
 

*
Non-income producing security.
^
The rate shown is the 7-day effective yield as of March 31, 2016.
 
See accompanying notes to schedule of investments.

CORNERSTONE TOTAL RETURN FUND, INC.
NOTES TO SCHEDULE OF INVESTMENTS
MARCH 31, 2016 (UNAUDITED)

Federal Income Tax Cost: The following information is computed on a tax basis for each item as of March 31, 2016:

Cost of portfolio investments
 
$
96,713,589
 
Gross unrealized appreciation
 
$
16,623,385
 
Gross unrealized depreciation
   
(3,451,850
)
Net unrealized appreciation
 
$
13,171,535
 

The difference between the federal income tax cost of portfolio investments and the Schedule of Investments cost for the Fund is due to certain timing differences in the recognition of capital gains or losses under income tax regulations and generally accepted accounting principles. These "book/tax" differences are temporary in nature and are due to the tax deferral of losses on wash sales.

As required by the Fair Value Measurement and Disclosures Topic of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification, the Fund has performed an analysis of all assets and liabilities measured at fair value to determine the significance and character of all inputs to their fair value determination.

The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into the following three broad categories.

·
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.


The following is a summary of the inputs used as of March 31, 2016 in valuing the Fund's investments carried at value:
 
 
 
VALUATION INPUTS
 
INVESTMENTS
IN
SECURITIES
   
OTHER FINANCIAL INSTRUMENTS*
 
             
Level 1 – Quoted Prices
           
 Equity Investments
 
$
108,931,563
   
$
-
 
 Short-Term Investments
   
-
     
-
 
Level 2 – Other Significant Observable Inputs
   
-
     
-
 
Level 3 – Significant Unobservable Inputs
   
-
     
-
 
Total
 
$
108,931,563
   
$
-
 

*
Other financial instruments include futures, forwards and swap contracts, if any.

The breakdown of the Fund's investments into major categories is disclosed in its Schedule of Investments.

As of March 31, 2016, the Fund did not have any transfers in and out of any Level.

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, 2016.

In May 2015, the FASB issued ASU No. 2015-07 “Disclosure for Investments in Certain Entities that Calculate Net Asset Value (“NAV”) per Share (or Its Equivalent).” The amendments in ASU No. 2015-07 remove the requirement to categorize within the fair value hierarchy investments measured using the NAV practical expedient. The ASU also removes certain disclosure requirements for investments that qualify, but do not utilize, the NAV practical expedient. The amendments in the ASU are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Fund's investment in Fidelity Institutional Money Market Government Portfolio - Class I has been removed from Level 1 disclosure under the guidance provided by the amendment to such ASU.

The Fund is exposed to financial  market risks, including the valuations of its investment portfolio. During the three months ended March 31, 2016, the Fund did not engage in derivative instruments and other hedging activities.

The Fund has evaluated the need for additional disclosures and/or adjustments resulting through the date its financial statements were issued. Based on this evaluation, no additional disclosures or adjustments were required to such Schedule of Investments.

Securities valuation policies and other investment related disclosures are hereby incorporated by reference to the Fund's annual report previously filed with the Securities and Exchange Commission on Form N-CSR on March 2, 2016 with a file number 811-02363.

Other information regarding the Fund is available in the Fund’s most recent annual report. This information is also available on the Fund’s website at www.cornerstonetotalreturnfund.com; or on the website of the Securities and Exchange Commission at 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 Total Return Fund, Inc.

By (Signature and Title)*
/s/ Ralph W. Bradshaw
 
   
Ralph W. Bradshaw, President and Chairman
 
   
(Principal Executive Officer)
 
       
Date
May 26, 2016
   
       
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 26, 2016
   
       
By (Signature and Title)*
/s/ Frank J. Maresca
 
   
Frank J. Maresca, Treasurer
(Principal Financial Officer)
 
       
Date
May 26, 2016
   

* Print the name and title of each signing officer under his or her signature.