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, New York
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, 2015
 
Item 1. Schedule of Investments.

CORNERSTONE TOTAL RETURN FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31, 2015 (Unaudited)

Description
  
No. of Shares
    
Value
  
EQUITY SECURITIES - 98.90%
  
   
 
CLOSED-END FUNDS - 14.88%
  
CORE - 2.09%
  
Adams Express Company (The)
    
6,000
     $
83,760
  
Advent/Claymore Enhanced Growth & Income Fund
    
43,895
      
413,491
  
Liberty All-Star Equity Fund
    
176,600
      
1,031,344
  
Tri-Continental Corporation
    
6,328
      
137,254
  
             
1,665,849
  
DEVELOPED MARKET - 0.33%
  
Aberdeen Australia Equity Fund, Inc.
    
4,316
      
30,860
  
Japan Smaller Capitalization Fund, Inc.
    
10,709
      
106,448
  
Swiss Helvetia Fund, Inc. (The)
    
10,687
      
123,328
  
 
            
260,636
  
EMERGING MARKETS - 0.76%
  
Aberdeen Chile Fund, Inc.
    
39,000
      
291,720
  
Aberdeen Emerging Markets Smaller Company Opportunities Fund, Inc. 
    
1,000
      
12,520
  
Aberdeen Japan Equity Fund, Inc.
    
690
      
5,589
  
JPMorgan China Region Fund, Inc.
    
658
      
11,831
  
Turkish Investment Fund, Inc. (The)
    
29,982
      
287,827
  
 
            
609,487
  
ENERGY MLP - 1.49%
  
ClearBridge Energy MLP Fund Inc.
    
25,100
      
626,496
  
ClearBridge Energy MLP Opportunity Fund Inc.
    
15,900
      
333,264
  
ClearBridge Energy MLP Total Return Fund Inc.
    
11,323
      
224,988
  
 
            
1,184,748
  
GLOBAL - 1.43%
  
Alpine Global Dynamic Dividend Fund
    
24,200
      
249,502
  
Clough Global Allocation Fund
    
10,243
      
154,669
  
Gabelli Global Utility & Income Trust (The)
    
4,540
      
84,172
  
GDL Fund (The)
    
23,565
      
243,662
  
John Hancock Hedged Equity & Income Fund
    
24,300
      
399,006
  
Lazard World Dividend & Income Fund, Inc.
    
700
      
8,848
  
             
1,139,859
  
HIGH CURRENT YIELD (LEVERAGED) - 0.01%
  
MFS Special Value Trust
    
1,100
      
7,260
  
 
                
NATURAL RESOURCES - 1.62%
  
BlackRock Resources & Commodities Strategy Trust
    
135,250
      
1,292,990
  
                 
OPTION ARBITRAGE/OPTIONS STRATEGIES - 1.97%
  
Madison Strategic Sector Premium Fund
    
300
      
3,612
  
Nuveen Nasdaq 100 Dynamic Overwrite Fund
    
81,700
      
1,531,875
  
Voya International High Dividend Equity Income Fund
    
4,000
      
32,160
  
             
1,567,647
  
PACIFIC EX JAPAN - 0.08%
  
Aberdeen Greater China Fund, Inc.
    
6,300
      
64,701
  
                 
REAL ESTATE - 3.59%
  
CBRE Clarion Global Real Estate Income Fund
    
55,408
      
495,902
  
 
See accompanying notes to schedule of investments.
CORNERSTONE TOTAL RETURN FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31, 2015 (Unaudited)
 
Description
  
No. of Shares
    
Value
  
Cohen & Steers Preferred Securities and Income Fund, Inc.
    
5,900
     $
114,755
  
Cohen & Steers Total Return Realty Fund, Inc.
    
4,200
      
57,498
  
Neuberger Berman Real Estate Securities Income Fund Inc.
    
191,405
      
1,037,415
  
Nuveen Real Estate Income Fund
    
67,983
      
810,357
  
RMR Real Estate Income Fund
    
16,381
      
348,096
  
             
2,864,023
  
SECTOR EQUITY - 0.20%
  
John Hancock Financial Opportunities Fund 
    
6,800
      
159,120
  
                 
   U.S. MORTGAGE - 0.13%
First Trust Mortgage Income Fund 7229 107,278
 
UTILITY - 1.17%
  
Duff & Phelps Global Utility Income Fund Inc.
    
47,400
      
936,150
  
   
 
      
107,278
  
VALUE - 0.01%
  
First Trust Dividend and Income Fund
    
1,200
      
10,620
  
 
                
TOTAL CLOSED-END FUNDS
            
11,870,368
  
                 
CONSUMER DISCRETIONARY - 10.03%
                
CBS Corporation - Class B
    
4,000
      
242,520
  
Comcast Corporation - Class A
    
21,012
      
1,186,548
  
Comcast Corporation - Special Class A
    
4,250
      
238,276
  
Delphi Automotive PLC
    
2,000
      
159,480
  
D.R. Horton, Inc.
    
2,500
      
71,200
  
DIRECTV *
    
4,500
      
382,950
  
Ford Motor Company
    
31,000
      
500,340
  
Gap, Inc. (The)
    
3,000
      
129,990
  
Home Depot, Inc. (The)
    
11,500
      
1,306,515
  
Johnson Controls, Inc.
    
5,500
      
277,420
  
Lowe's Companies, Inc.
    
5,000
      
371,950
  
Macy's, Inc.
    
3,000
      
194,730
  
Time Warner Cable Inc.
    
2,500
      
374,700
  
Time Warner Inc.
    
6,466
      
545,989
  
TJX Companies, Inc. (The)
    
3,000
      
210,150
  
Twenty-First Century Fox, Inc.
    
2,500
      
82,200
  
Viacom Inc. - Class B
    
3,000
      
204,900
  
Walt Disney Company (The)
    
14,500
      
1,520,905
  
             
8,000,763
  
CONSUMER STAPLES - 7.93%
                
Altria Group, Inc.
    
17,000
      
850,340
  
Archer-Daniels-Midland Company
    
5,000
      
237,000
  
CVS Caremark Corporation
    
13,200
      
1,362,372
  
Kellogg Company
    
3,000
      
197,850
  
Kraft Foods Group, Inc.
    
1,000
      
87,115
  
Kroger Co. (The)
    
5,000
      
383,300
  
Mondelēz International, Inc. - Class A
    
3,000
      
108,270
  
PepsiCo, Inc.
    
8,000
      
764,960
  
 
See accompanying notes to schedule of investments.
CORNERSTONE TOTAL RETURN FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31, 2015 (Unaudited)
 
Description
  
No. of Shares
    
Value
  
Tyson Foods, Inc.
    
3,000
     $
114,900
  
Wal-Mart Stores, Inc.
    
27,000
      
2,220,750
  
             
6,326,857
  
ENERGY - 6.83%
                
California Resources Corporation
    
2,000
      
15,220
  
ConocoPhillips
    
8,000
      
498,080
  
Devon Energy Corporation
    
3,500
      
211,085
  
EOG Resources, Inc.
    
4,000
      
366,760
  
Exxon Mobil Corporation
    
31,000
      
2,635,000
  
Kinder Morgan, Inc.
    
5,000
      
210,300
  
Occidental Petroleum Corporation
    
5,000
      
365,000
  
Phillips 66
    
3,000
      
235,800
  
Schlumberger Limited
    
7,500
      
625,800
  
Valero Energy Corporation
    
4,500
      
286,290
  
             
5,449,335
  
EXCHANGE-TRADED FUNDS - 2.59%
                
iShares Core S&P 500 ETF
    
5,000
      
1,039,150
  
SPDR S&P 500 ETF Trust
    
5,000
      
1,032,150
  
             
2,071,300
  
FINANCIALS - 12.97%
                
ACE Limited
    
3,000
      
334,470
  
American Express Company
    
5,000
      
390,600
  
Ameriprise Financial, Inc.
    
2,000
      
261,680
  
Aon plc
    
2,500
      
240,300
  
Berkshire Hathaway Inc. - Class B *
    
14,000
      
2,020,480
  
Capital One Financial Corporation
    
2,500
      
197,050
  
Discover Financial Services
    
4,000
      
225,400
  
Fifth Third Bancorp
    
9,000
      
169,650
  
Franklin Resources, Inc.
    
4,000
      
205,280
  
Goldman Sachs Group, Inc. (The)
    
3,500
      
657,895
  
JPMorgan Chase & Co.
    
22,200
      
1,344,876
  
Loews Corporation
    
3,000
      
122,490
  
Marsh & McLennan Companies, Inc.
    
4,000
      
224,360
  
MetLife, Inc.
    
10,500
      
530,775
  
Morgan Stanley
    
16,000
      
571,040
  
PNC Financial Services Group, Inc. (The)
    
5,000
      
466,200
  
Prudential Financial, Inc.
    
4,000
      
321,240
  
SunTrust Banks, Inc.
    
5,000
      
205,450
  
Travelers Companies, Inc. (The)
    
2,000
      
216,260
  
T. Rowe Price Group, Inc.
    
2,500
      
202,450
  
Wells Fargo & Company
    
24,000
      
1,305,600
  
Weyerhaeuser Company
    
4,000
      
132,600
  
 
            
10,346,146
  
HEALTH CARE - 11.95%
                
Abbott Laboratories
    
10,000
      
463,300
  
AbbVie Inc.
    
6,000
      
351,240
  
Actavis plc *
    
2,105
      
626,460
  
Aetna Inc.
    
3,000
      
319,590
  
Amgen Inc.
    
6,000
      
959,100
  
 
See accompanying notes to schedule of investments.
CORNERSTONE TOTAL RETURN FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31, 2015 (Unaudited)
 
Description
  
No. of Shares
    
Value
  
Anthem, Inc.
    
2,000
     $
308,820
  
Baxter International, Inc.
    
5,700
      
390,450
  
Cigna Corporation
    
2,000
      
258,880
  
Express Scripts Holding Company *
    
6,000
      
520,620
  
Johnson & Johnson
    
8,500
      
855,100
  
McKesson Corporation
    
2,000
      
452,400
  
Merck & Company, Inc.
    
27,000
      
1,551,960
  
Pfizer, Inc.
    
15,462
      
537,923
  
St. Jude Medical, Inc.
    
3,000
      
196,200
  
Stryker Corporation
    
3,000
      
276,750
  
Thermo Fisher Scientific Inc.
    
3,000
      
403,020
  
UnitedHealth Group Incorporated
    
9,000
      
1,064,610
  
             
9,536,423
  
INDUSTRIALS - 8.98%
                
Boeing Company (The)
    
3,000
      
450,240
  
Caterpillar Inc.
    
4,000
      
320,120
  
CSX Corporation
    
8,000
      
264,960
  
Deere & Company
    
3,500
      
306,915
  
Delta Air Lines, Inc.
    
4,000
      
179,840
  
FedEx Corporation
    
3,000
      
496,350
  
General Electric Company
    
51,000
      
1,265,310
  
Honeywell International Inc.
    
7,000
      
730,170
  
Lockheed Martin Corporation
    
2,500
      
507,400
  
Norfolk Southern Corporation
    
3,000
      
308,760
  
Northrop Grumman Corporation
    
2,000
      
321,920
  
Precision Castparts Corporation
    
1,500
      
315,000
  
Raytheon Company
    
2,000
      
218,500
  
Southwest Airlines Co.
    
4,000
      
177,200
  
Union Pacific Corporation
    
9,000
      
974,790
  
Waste Management, Inc.
    
6,000
      
325,380
  
             
7,162,855
  
INFORMATION TECHNOLOGY - 16.07%
                
Apple Inc.
    
35,000
      
4,355,050
  
Cisco Systems, Inc.
    
40,000
      
1,101,000
  
Cognizant Technology Solutions Corporation *
    
3,000
      
187,170
  
eBay Inc. *
    
9,000
      
519,120
  
EMC Corporation
    
13,000
      
332,280
  
Facebook, Inc. *
    
10,000
      
822,150
  
Google Inc. - Class A *
    
1,000
      
554,700
  
Google Inc. - Class C *
    
1,000
      
548,000
  
Intel Corporation
    
42,000
      
1,313,340
  
International Business Machines Corporation
    
4,000
      
642,000
  
Micron Technology, Inc. *
    
7,000
      
189,910
  
Oracle Corporation
    
34,700
      
1,497,305
  
QUALCOMM Incorporated
    
11,000
      
762,740
  
             
12,824,765
  
MATERIALS - 2.54%
                
Alcoa Inc.
    
6,000
      
77,520
  
Dow Chemical Company (The)
    
11,000
      
527,780
  
 
See accompanying notes to schedule of investments.
CORNERSTONE TOTAL RETURN FUND, INC.
SCHEDULE OF INVESTMENTS - MARCH 31, 2015 (Unaudited)
 
Description
  
No. of Shares
    
Value
  
Ecolab Inc.
    
2,000
     $
228,760
  
Freeport-McMoRan Copper & Gold Inc.
    
8,500
      
161,075
  
International Paper Company
    
3,300
      
183,117
  
LyondellBasell Industries N.V.
    
3,000
      
263,400
  
PPG Industries, Inc.
    
1,000
      
225,540
  
Praxair, Inc.
    
3,000
      
362,220
  
             
2,029,412
  
TELECOMMUNICATION SERVICES - 2.18%
                
AT&T, Inc.
    
17,589
      
574,281
  
Verizon Communications, Inc.
    
24,000
      
1,167,120
  
             
1,741,401
  
UTILITIES - 1.95%
                
AES Corporation (The)
    
4,600
      
59,110
  
American Electric Power Company, Inc.
    
4,000
      
225,000
  
Edison International
    
2,000
      
124,940
  
Exelon Corporation
    
7,000
      
235,270
  
FirstEnergy Corp.
    
2,000
      
70,120
  
PG&E Corporation
    
4,000
      
212,280
  
PPL Corporation
    
4,000
      
134,640
  
Public Service Enterprises Group, Inc.
    
4,000
      
167,680
  
Southern Company (The)
    
3,000
      
132,840
  
Xcel Energy Inc.
    
5,500
      
191,455
  
             
1,553,335
  
TOTAL EQUITY SECURITIES (cost - $63,311,032)
            
78,912,960
  
                 
SHORT-TERM INVESTMENTS - 1.07%
                
MONEY MARKET FUNDS - 1.07%
                
Fidelity Institutional Money Market Government Portfolio - Class I, 0.01%^ (cost - $851,908)
    
851,908
      
851,908
  
 
                
TOTAL INVESTMENTS - 99.97% (cost - $64,162,940)
            
79,764,868
  
                 
OTHER ASSETS IN EXCESS OF LIABILITIES - 0.03%
            
23,497
  
                 
NET ASSETS - 100.00%
          
$
79,788,365
  
 
* Non-income producing security. 
^ The rate shown is the 7-day effective yield as of March 31, 2015. 
 
See accompanying notes to schedule of investments.
CORNERSTONE TOTAL RETURN FUND, INC.
NOTES TO SCHEDULE OF INVESTMENTS
MARCH 31, 2015 (UNAUDITED)
 
Federal Income Tax Cost: The following information is computed on a tax basis for each item as of March 31, 2015:

Cost of portfolio investments
  
$
64,170,460
  
Gross unrealized appreciation
  
$
16,929,539
  
Gross unrealized depreciation
    
(1,335,131
)
Net unrealized appreciation
  
$
15,594,408
  

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 Measuren1ent 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. Level2 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, 2015 in valuing the Fund's investments carried at value:

 
 
VALUATION INPUTS
  
INVESTMENTS
IN
SECURITIES
    
OTHER FINANCIAL INSTRUMENTS*
  
         
Level 1 – Quoted Prices
        
   Equity Investments
  
$
78,912,960
    
$
-
  
   Short-Term Investments
    
851,908
      
-
  
Level 2 – Other Significant Observable Inputs
    
-
      
-
  
Level 3 – Significant Unobservable Inputs
    
-
      
-
  
Total
  
$
79,764,868
    
$
-
  

* 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, 2015, 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, 2015.

The Fund is exposed to financial market risks, including the valuations of its investment portfolio. During the three months ended March 31, 2015, 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 February 24, 2015 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 29, 2015
    
       
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 29, 2015
    
       
By (Signature and Title)*
/s/ Frank J. Maresca
  
   
Frank J. Maresca, Treasurer
(Principal Financial Officer)
  
       
Date
May 29, 2015
    

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