-----------------------------------------------------------
CORNERSTONE STRATEGIC VALUE FUND, INC.
Pro Forma
Portfolio of Investments (@)
December 31, 2003
(Unaudited)
                                                        TARGET FUND            ACQUIRING FUND                 Pro Forma
                                        % of                MGC                      CLM                     Combined Fund
                                         Net      Shares/      Market        Shares/     Market          Shares/         Market
                                       Assets       Par       Value ($)         Par       Value            Par         Value ($)
                                       ------------------------------------------------------------------------------------------
                                                                                                  

EQUITY SECURITIES                       94.38%

CLOSED-END DOMESTIC FUNDS -              1.73%
Adams Express Co.                        0.46%                                  49,500     614,295         49,500        614,295
General American
  Investor Co. Inc.                      0.23%                                  10,500     312,165         10,500        312,165
Salomon Brothers Fund,
  Inc. (The)                             0.16%                                  18,400     221,352         18,400        221,352
Tri-Continental Corp.                    0.47%                                  39,000     639,600         39,000        639,600
Zweig Fund, Inc.                         0.40%                                 110,400     540,960        110,400        540,960
                                                                                        -----------                   -----------
                                                                                         2,328,372                     2,328,372

CONSUMER DISCRETIONARY -                13.73%
Bed Bath & Beyond Inc. *                 0.03%                                   1,000      43,350          1,000         43,350
Best Buy Co., Inc.                       0.04%                                   1,000      52,240          1,000         52,240
Carnival Corp.                           0.06%                                   2,100      83,433          2,100         83,433
Carter's, Inc.*                          0.05%       2,500         63,625                                   2,500         63,625
Clear Channel
  Communications,  Inc.                  0.07%                                   2,100      98,343          2,100         98,343
Comcast Corp., Class A *                 0.09%                                   3,882     127,601          3,882        127,601
Costco Wholesale Corp. *                 0.04%                                   1,500      55,770          1,500         55,770
CVS Corp.                                0.04%                                   1,500      54,180          1,500         54,180
Delphi Corp.                             0.02%                                   2,000      20,420          2,000         20,420
Ford Motor Co.                           0.08%                                   6,500     104,000          6,500        104,000
Fortune Brands, Inc.                     0.05%                                   1,000      71,490          1,000         71,490
Furniture Brands
  International, Inc.                    2.18%     100,100      2,935,933                                 100,100      2,935,933
Gannett Co., Inc.                        0.07%                                   1,000      89,160          1,000         89,160
Gap, Inc. (The)                          0.05%                                   2,700      62,667          2,700         62,667
General Motors Corp.                     0.08%                                   1,900     101,460          1,900        101,460
Gildan Activewear Inc.,
  Class A*                               1.18%      51,500      1,590,320                                  51,500      1,590,320
Goodyear Tire &  Rubber
  Co. (The) *                            0.01%                                   2,500      19,650          2,500         19,650
Harley-Davidson, Inc.                    0.04%                                   1,000      47,530          1,000         47,530
Hilton Hotels Corp.                      0.02%                                   1,500      25,695          1,500         25,695
Home Depot, Inc. (The)                   0.16%                                   6,100     216,489          6,100        216,489
Kohl's Corp. *                           0.03%                                   1,000      44,940          1,000         44,940






                                      -1-


Lowe's Companies, Inc.                   0.10%                                   2,500     138,475          2,500        138,475
Marriott International,
  Inc., Class A                          0.03%                                   1,000      46,200          1,000         46,200
Martek Biosciences Corp.*                1.47%      30,500      1,981,585                                  30,500      1,981,585
May Department Stores Co.
  (The)                                  0.02%                                   1,000      29,070          1,000         29,070
McDonald's Corp.                         0.04%                                   2,100      52,143          2,100         52,143
Multimedia Games, Inc.*                  1.31%      43,000      1,767,300                                  43,000      1,767,300
NIKE, Inc., Class B                      0.05%                                   1,000      68,460          1,000         68,460
Omnicom Group Inc.                       0.06%                                   1,000      87,330          1,000         87,330
Reebok International Ltd.                0.04%                                   1,500      58,980          1,500         58,980
Staples, Inc. *                          0.03%                                   1,500      40,950          1,500         40,950
Starbucks Corp. *                        0.03%                                   1,200      39,672          1,200         39,672
Target Corp.                             0.09%                                   3,200     122,880          3,200        122,880
The Cheesecake Factory Inc.*             1.23%      37,700      1,659,931                                  37,700      1,659,931
Thor Industries, Inc.                    1.20%      28,800      1,619,136                                  28,800      1,619,136
Time Warner Inc. *                       0.14%                                  10,500     188,895         10,500        188,895
Tractor Supply Company*                  0.55%      19,200        746,688                                  19,200        746,688
United Natural Foods, Inc.*              2.11%      79,200      2,844,072                                  79,200      2,844,072
Viacom Inc., non-voting
  Class B                                0.20%                                   6,000     266,280          6,000        266,280
Wal-Mart Stores, Inc.                    0.52%                                  13,300     705,565         13,300        705,565
Walt Disney Co. (The)                    0.08%                                   4,700     109,651          4,700        109,651
Yum! Brands, Inc. *                      0.03%                                   1,000      34,400          1,000         34,400
                                                             -------------                                            -----------
                                                               15,208,590                3,307,369                    18,515,959

CONSUMER STAPLES -                       4.71%
Albertson's, Inc.                        0.04%                                   2,500      56,625          2,500         56,625
Altria Group, Inc.                       0.20%                                   4,900     266,658          4,900        266,658
Anheuser-Busch Companies,
  Inc.                                   0.09%                                   2,200     115,896          2,200        115,896
Archer-Daniels-Midland Co.               0.03%                                   2,415      36,756          2,415         36,756
Coca-Cola Co. (The)                      0.24%                                   6,500     329,875          6,500        329,875
Colgate-Palmolive Co.                    0.04%                                   1,000      50,050          1,000         50,050
ConAgra Foods, Inc.                      0.04%                                   1,900      50,141          1,900         50,141
General Mills, Inc.                      0.08%                                   2,500     113,250          2,500        113,250
Gillette Co. (The)                       0.07%                                   2,600      95,498          2,600         95,498
Kimberly-Clark Corp.                     0.04%                                     900      53,181            900         53,181
Kroger Co. (The) *                       0.05%                                   3,500      64,785          3,500         64,785
Panera Bread Co. Class A*                1.24%      42,300      1,672,119                                  42,300      1,672,119
PepsiCo, Inc.                            0.18%                                   5,100     237,762          5,100        237,762
Performance Food Group Co.*              1.05%      39,300      1,421,481                                  39,300      1,421,481
Philadelphia Suburban Corp.              0.87%      53,077      1,173,002                                  53,077      1,173,002
Procter & Gamble Co. (The)               0.28%                                   3,800     379,544          3,800        379,544
Sysco Corp.                              0.09%                                   3,300     122,859          3,300        122,859
Walgreen Co.                             0.09%                                   3,200     116,416          3,200        116,416
                                                             -------------              -----------
                                                                4,266,602                2,089,296                     6,355,898



                                      -2-



ENERGY -                                 5.26%
Anadarko Petroleum Corp.                 0.03%                                     900      45,909            900         45,909
Baker Hughes Inc.                        0.06%                                   2,500      80,400          2,500         80,400
CenterPoint Energy, Inc.                 0.02%                                   2,500      24,225          2,500         24,225
ChevronTexaco Corp.                      0.21%                                   3,340     288,543          3,340        288,543
ConocoPhillips                           0.08%                                   1,728     113,305          1,728        113,305
Exxon Mobil Corp.                        0.58%                                  19,000     779,000         19,000        779,000
FMC Technologies, Inc.*                  1.83%     105,800      2,465,140                                 105,800      2,465,140
Reliant Resources, Inc. *                0.01%                                   1,971      14,506          1,971         14,506
Schlumberger Ltd.                        0.08%                                   2,000     109,440          2,000        109,440
Ultra Petroleum Corp.*                   1.47%      80,300      1,976,986                                  80,300      1,976,986
Western Gas Resources, Inc.              0.89%      25,400      1,200,150                                  25,400      1,200,150
                                                             -------------              -----------                   -----------
                                                                5,642,276                1,455,328                     7,097,604

FINANCIALS -                            10.70%
Affiliated Managers Group,
  Inc.*                                  2.08%      40,400      2,811,436                                  40,400      2,811,436
AFLAC Inc.                               0.05%                                   1,900      68,742          1,900         68,742
Allstate Corp. (The)                     0.08%                                   2,500     107,550          2,500        107,550
American Express Co.                     0.11%                                   3,000     144,690          3,000        144,690
American International Group,
  Inc.                                   0.44%                                   9,042     599,304          9,042        599,304
Bank of America Corp.                    0.23%                                   3,900     313,677          3,900        313,677
Bank of New York Co., Inc. (The)         0.06%                                   2,500      82,800          2,500         82,800
Bank One Corp.                           0.09%                                   2,600     118,534          2,600        118,534
BB&T Corp.                               0.05%                                   1,600      61,824          1,600         61,824
Charles Schwab Corp. (The)               0.02%                                   2,500      29,600          2,500         29,600
Citigroup Inc.                           0.47%                                  13,100     635,874         13,100        635,874
Direct General Corp.                     1.01%      41,000      1,357,100                                  41,000      1,357,100
Fannie Mae                               0.12%                                   2,200     165,132          2,200        165,132
Fifth Third Bancorp                      0.09%                                   2,000     118,200          2,000        118,200
First Niagara Financial Group, Inc.      0.93%      84,000      1,252,440                                  84,000      1,252,440
FleetBoston Financial Corp.              0.08%                                   2,400     104,760          2,400        104,760
Freddie Mac                              0.11%                                   2,500     145,800          2,500        145,800
Goldman Sachs Group, Inc. (The)          0.10%                                   1,300     128,349          1,300        128,349
HSBC Holdings plc, ADR                   0.06%                                     963      75,904            963         75,904
J. P. Morgan Chase & Co.                 0.16%                                   6,000     220,380          6,000        220,380
Marsh & McLennan Companies, Inc.         0.14%                                   4,000     191,560          4,000        191,560
MBNA Corp.                               0.06%                                   3,000      74,550          3,000         74,550
Mellon Financial Corp.                   0.04%                                   1,800      57,798          1,800         57,798
Merrill Lynch & Co., Inc.                0.09%                                   2,000     117,300          2,000        117,300
MetLife, Inc.                            0.07%                                   2,700      90,909          2,700         90,909



                                      -3-


Morgan Stanley                           0.15%                                   3,500     202,545          3,500        202,545
National City Corp.                      0.06%                                   2,200      74,668          2,200         74,668
National Financial Partners Corp.        0.83%      40,500      1,115,775                                  40,500      1,115,775
Platinum Underwriters Holdings, Ltd.     1.62%      72,600      2,178,000                                  72,600      2,178,000
PNC Financial Services Group             0.04%                                   1,100      60,203          1,100         60,203
Prudential Financial, Inc.               0.08%                                   2,500     104,425          2,500        104,425
Scottish Re Group Ltd.                   0.35%      22,900        475,862                                  22,900        475,862
State Street Corp.                       0.04%                                   1,000      52,080          1,000         52,080
SunTrust Banks, Inc.                     0.06%                                   1,100      78,650          1,100         78,650
The First Marblehead Corp. *             0.20%      12,600        275,688                                  12,600        275,688
Travelers Property Casualty Corp.,
  Class A                                0.01%                                     738      12,383            738         12,383
Travelers Property Casualty Corp.,
  Class B                                0.02%                                   1,517      25,743          1,517         25,743
U.S. Bancorp                             0.09%                                   4,200     125,076          4,200        125,076
Wachovia Corp.                           0.12%                                   3,600     167,724          3,600        167,724
Washington Mutual, Inc.                  0.09%                                   3,150     126,378          3,150        126,378
Wells Fargo & Co.                        0.21%                                   4,800     282,672          4,800        282,672
                                                             -------------              -----------                   -----------
                                                             -------------              -----------                   -----------
                                                                9,466,301                4,965,784                    14,432,085

HEALTHCARE -                            12.44%
Abbott Laboratories                      0.14%                                   4,000     186,400          4,000        186,400
Amgen Inc. *                             0.16%                                   3,500     216,300          3,500        216,300
Baxter International Inc.                0.06%                                   2,500      76,300          2,500         76,300
Boston Scientific Corp. *                0.08%                                   3,000     110,280          3,000        110,280
Bristol-Myers Squibb Co.                 0.10%                                   4,500     128,700          4,500        128,700
Cardinal Health, Inc.                    0.05%                                   1,000      61,160          1,000         61,160
Cooper Companies, Inc                    2.10%      60,000      2,827,800                                  60,000      2,827,800
Edwards Lifesciences                     2.01%      89,900      2,704,192                                  89,900      2,704,192
Eli Lilly & Co.                          0.16%                                   3,000     210,990          3,000        210,990
HCA Inc.                                 0.06%                                   2,000      85,920          2,000         85,920
HEALTHSOUTH Corp. *                      0.01%                                   2,500      11,450          2,500         11,450
IDEXX Laboratories, Inc.*                1.25%      36,400      1,684,592                                  36,400      1,684,592
Integra Lifesciences Holdings*           1.69%      79,500      2,276,085                                  79,500      2,276,085
Johnson & Johnson                        0.29%                                   7,500     387,450          7,500        387,450
McKesson Corp.                           0.02%                                   1,000      32,160          1,000         32,160
Medco Health Solutions, Inc. *           0.02%                                     723      24,575            723         24,575
Medtronic, Inc.                          0.16%                                   4,300     209,023          4,300        209,023
Merck & Co. Inc.                         0.21%                                   6,000     277,200          6,000        277,200
Neurocrine Biosciences, Inc. *           1.28%      31,700      1,728,918                                  31,700      1,728,918
NPS Pharmaceuticals, Inc.*               1.82%      80,000      2,459,200                                  80,000      2,459,200
Pfizer Inc.                              0.54%                                  20,500     724,265         20,500        724,265
Schering-Plough Corp.                    0.03%                                   2,500      43,475          2,500         43,475
UnitedHealth Group Inc.                  0.13%                                   3,000     174,540          3,000        174,540
Wyeth                                    0.10%                                   3,300     140,085          3,300        140,085
                                                             -------------              -----------                   -----------
                                                               13,680,787                3,100,273                    16,781,060



                                      -4-



INDUSTRIALS -                           12.81%
3M Co.                                   0.13%                                   2,000     170,060          2,000        170,060
Automatic Data Processing, Inc.          0.06%                                   2,000      79,220          2,000         79,220
Boeing Co. (The)                         0.09%                                   3,000     126,420          3,000        126,420
Caterpillar Inc.                         0.08%                                   1,300     107,926          1,300        107,926
Cendant Corp. *                          0.04%                                   2,700      60,129          2,700         60,129
Central Freight Lines, Inc.*             0.04%       3,300         58,575                                   3,300         58,575
Compass Minerals International, Inc.*    0.56%      52,700        752,556                                  52,700        752,556
Concord EFS, Inc. *                      0.03%                                   2,500      37,100          2,500         37,100
DSP Group, Inc.*                         2.51%     135,600      3,377,796                                 135,600      3,377,796
EDO Corp.                                1.03%      56,500      1,392,725                                  56,500      1,392,725
Emerson Electric Co.                     0.07%                                   1,500      97,125          1,500         97,125
FedEx Corp.                              0.05%                                   1,000      67,500          1,000         67,500
General Electric Co.                     0.67%                                  29,000     898,420         29,000        898,420
Heartland Express, Inc.                  1.12%      62,337      1,507,932                                  62,337      1,507,932
Honeywell International Inc.             0.07%                                   2,800      93,604          2,800         93,604
Illinois Tool Works Inc.                 0.06%                                   1,000      83,910          1,000         83,910
Lockheed Martin Corp.                    0.06%                                   1,500      77,100          1,500         77,100
Masco Corp.                              0.03%                                   1,700      46,597          1,700         46,597
Overnight Corp.*                         0.09%       5,600        127,400                                   5,600        127,400
Paychex, Inc.                            0.07%                                   2,500      93,000          2,500         93,000
Quanta Services, Inc.*                   0.38%      70,000        511,000                                  70,000        511,000
Shuffle Master, Inc.*                    1.88%      73,400      2,541,108                                  73,400      2,541,108
Southwest Airlines Co.                   0.03%                                   2,700      43,578          2,700         43,578
Swift Transportation Co., Inc.*          1.05%      67,100      1,410,442                                  67,100      1,410,442
Transocean Inc. *                        0.04%                                   2,500      60,025          2,500         60,025
Tyco International Ltd.                  0.14%                                   7,000     185,500          7,000        185,500
Union Pacific Corp.                      0.05%                                   1,000      69,480          1,000         69,480
United Parcel Service, Inc., Class B     0.19%                                   3,500     260,925          3,500        260,925
United Technologies Corp.                0.12%                                   1,700     161,109          1,700        161,109
Universal Technical Institute Inc.*      0.18%       8,200        246,000                                   8,200        246,000
USF Corp.                                1.84%      72,600      2,482,194                                  72,600      2,482,194
Waste Management, Inc.                   0.04%                                   1,700      50,320          1,700         50,320
                                                             -------------              -----------                   -----------
                                                               14,407,728                2,869,048                    17,276,776

INFORMATION TECHNOLOGY -                22.81%
Agere Systems Inc.,  Class A *           0.00%                                     115         351            115            351
Agere Systems Inc.,  Class B *           0.01%                                   2,830       8,207          2,830          8,207
Agilent Technologies, Inc.               0.04%                                   1,800      52,632          1,800         52,632



                                      -5-


Altera Corp. *                           0.03%                                   1,500      34,050          1,500         34,050
Analog Devices, Inc.                     0.03%                                   1,000      45,650          1,000         45,650
Applied Films Corp                       1.52%      62,000      2,047,240                                  62,000      2,047,240
Applied Materials, Inc. *                0.05%                                   2,900      65,105          2,900         65,105
Avocent Corporation                      1.91%      70,500      2,574,660                                  70,500      2,574,660
Caci International Inc. Class A          1.95%      54,100      2,630,342                                  54,100      2,630,342
Callidus Software*                       0.04%       3,300         58,376                                   3,300         58,376
Cisco Systems, Inc. *                    0.30%                                  16,900     410,501         16,900        410,501
Corning Inc. *                           0.02%                                   3,000      31,290          3,000         31,290
Dell Inc. *                              0.16%                                   6,500     220,740          6,500        220,740
Electronic Data Systems Corp.            0.02%                                   1,000      24,540          1,000         24,540
EMC Corp. *                              3.48%     355,830      4,597,324        7,000      90,440        362,830      4,687,764
Enterasys Networks, Inc.*                1.56%     562,100      2,107,875                                 562,100      2,107,875
Equinix, Inc.*                           0.35%      16,500        465,300                                  16,500        465,300
Fairchild Semiconductor
  International, Inc.*                   3.73%     201,600      5,033,952                                 201,600      5,033,952
First Data Corp.                         0.15%                                   5,000     205,450          5,000        205,450
Harris Interactive Inc.*                 0.94%     152,200      1,263,260                                 152,200      1,263,260
Hewlett-Packard Co.                      0.13%                                   7,800     179,166          7,800        179,166
Intel Corp.                              0.47%                                  19,500     627,900         19,500        627,900
International Business Machines Corp.    0.37%                                   5,400     500,472          5,400        500,472
ITT Educational Services, Inc.*          1.44%      41,200      1,935,164                                  41,200      1,935,164
Linear Technology Corp.                  0.03%                                   1,000      42,070          1,000         42,070
Maxim Integrated Products, Inc.          0.04%                                   1,000      49,800          1,000         49,800
Micron Technology, Inc. *                0.02%                                   2,500      33,675          2,500         33,675
Microsoft Corp.                          0.62%                                  30,200     831,708         30,200        831,708
Motorola, Inc.                           0.07%                                   6,600      92,862          6,600         92,862
Oracle Corp. *                           0.12%                                  12,300     162,360         12,300        162,360
QUALCOMM Inc.                            0.10%                                   2,500     134,825          2,500        134,825
Sanmina-SCI Corp. *                      0.02%                                   2,500      31,525          2,500         31,525
Siebel Systems, Inc. *                   0.03%                                   2,500      34,675          2,500         34,675
Skyworks Solutions, Inc.*                1.16%     179,100      1,558,170                                 179,100      1,558,170
Solectron Corp. *                        0.01%                                   3,000      17,730          3,000         17,730
Sun Microsystems, Inc. *                 0.02%                                   7,500      33,675          7,500         33,675
Texas Instruments Inc.                   0.11%                                   4,900     143,962          4,900        143,962
Yahoo! Inc. *                            0.06%                                   1,900      85,823          1,900         85,823
Zoran Corp.*                             1.70%     131,750      2,291,133                                 131,750      2,291,133
                                                             -------------              -----------                   -----------
                                                               26,562,795                4,191,184                    30,753,979

MATERIALS -                              8.94%
Air Products & Chemicals, Inc.           0.04%                                   1,000      52,830          1,000         52,830
Alcoa Inc.                               0.09%                                   3,100     117,800          3,100        117,800
Dow Chemical Co. (The)                   0.08%                                   2,700     112,239          2,700        112,239



                                      -6-


E. I. du Pont de Nemours & Co.           0.07%                                   2,200     100,958          2,200        100,958
General Cable Corp.*                     0.75%     124,200      1,012,230                                 124,200      1,012,230
Georgia-Pacific Corp.                    0.02%                                   1,000      30,670          1,000         30,670
International Paper Co.                  0.06%                                   2,000      86,220          2,000         86,220
Joy Global Inc.                          2.21%     114,100      2,983,715                                 114,100      2,983,715
Packaging Corp of America                2.10%     129,600      2,833,056                                 129,600      2,833,056
Peabody Energy Corp.                     2.07%      67,000      2,794,570                                  67,000      2,794,570
Praxair, Inc.                            0.08%                                   3,000     114,600          3,000        114,600
Steel Dynamics, Inc.*                    1.29%      74,300      1,745,307                                  74,300      1,745,307
Weyerhaeuser Co.                         0.05%                                   1,000      64,000          1,000         64,000
                                                             -------------              -----------                   -----------
                                                               11,368,878                  679,317                    12,048,195

TELECOMMUNICATION SERVICES -             0.83%
AT&T Corp.                               0.04%                                   2,400      48,720          2,400         48,720
AT&T Wireless Services Inc. *            0.03%                                   4,522      36,131          4,522         36,131
BellSouth Corp.                          0.14%                                   6,500     183,950          6,500        183,950
Journal Communications, Inc.             0.16%      12,000        222,360                                  12,000        222,360
Lucent Technologies Inc. *               0.02%                                  10,700      30,388         10,700         30,388
SBC Communications Inc.                  0.05%                                   2,500      70,150          2,500         70,150
Sprint Corp. (FON Group)                 0.15%                                   7,900     205,953          7,900        205,953
Sprint Corp. (PCS Group) *               0.04%                                   3,000      49,260          3,000         49,260
Verizon Communications Inc.              0.21%                                   7,900     277,132          7,900        277,132
                                                             -------------              -----------                   -----------
                                                                  222,360                  901,684                     1,124,044

UTILITIES -                              0.41%
American Electric Power Co., Inc.        0.03%                                   1,200      36,612          1,200         36,612
Dominion Resources, Inc.                 0.05%                                   1,000      63,830          1,000         63,830
Duke Energy Corp.                        0.04%                                   2,800      57,260          2,800         57,260
Edison International *                   0.04%                                   2,500      54,825          2,500         54,825
FirstEnergy Corp.                        0.07%                                   2,500      88,000          2,500         88,000
Scottish Power plc, ADR                  0.08%                                   4,000     108,720          4,000        108,720
Southern Co. (The)                       0.05%                                   2,400      72,600          2,400         72,600
TXU Corp.                                0.02%                                   1,000      23,720          1,000         23,720
Xcel Energy, Inc.                        0.03%                                   2,500      42,450          2,500         42,450
                                                             -------------              -----------                   -----------
                                                                        0                  548,017                       548,017

TOTAL EQUITY SECURITIES                 94.38%                100,826,318               26,435,672                   127,261,990
                                                             -------------              -----------                   -----------

SHORT-TERM INVESTMENTS -                25.03%
   REPURCHASE AGREEMENTS -              25.03%
Bear, Stearns & Co. Inc.                 5.83%   7,867,525      7,867,525                               7,867,525      7,867,525
(Agreement dated 12/31/03 to be
repurchased at $7,867,897)
0.85%, 01/02/04




                                      -7-



Bear, Stearns & Co. Inc.                17.70%  23,869,214     23,869,214                              23,869,214     23,869,214
(Agreement dated 12/31/03 to be
repurchased at $23,870,620)
1.06%**, 01/02/04***

Bear, Stearns & Co. Inc.                 1.02%   1,380,273      1,380,273                               1,380,273      1,380,273
(Agreement dated 12/31/03 to be
repurchased at $1,380,345)
0.94%**, 01/02/04***

Bear, Stearns & Co. Inc.                 0.10%                                 139,977     139,977        139,977        139,977
(Agreement dated 12/31/03 to
be repurchased at $139,984),
0.85%,  01/02/04

Bear, Stearns & Co. Inc.                 0.32%                                 425,588     425,588        425,588        425,588
(Agreement dated 12/31/03 to
be repurchased at $425,613),
1.06%**,  01/02/04 ***

Bear, Stearns & Co. Inc.                 0.05%                                  65,644      65,644         65,644         65,644
(Agreement dated 12/31/03 to
be repurchased at $65,647),
0.94%**,  01/02/04 ***
                                                             -------------              -----------                   -----------

TOTAL SHORT-TERM INVESTMENTS            25.03%                 33,117,012                  631,209                    33,748,221


                                                             -------------              -----------                   -----------
TOTAL INVESTMENTS AT MARKET            119.41%                133,943,330               27,066,881                    161,010,211
                                                             -------------              -----------                   -----------
TOTAL INVESTMENTS AT COST                                     108,743,027               24,952,427                    133,695,454
                                                             -------------              -----------                   -----------




                                      -8-



@      No adjustments are shown to the unaudited pro forma combined portfolio of
       investments due to the fact that upon consummation of the merger,
       securities would need to be sold in order for Acquiring Fund to comply
       with its prospectus restrictions. The foregoing sentence shall not
       restrict in any way the ability of the investment adviser of any of the
       funds from buying or selling securities in the normal course of such
       fund's business and operations.

*     Non-income producing securities








                                      -9-




--------------------------------------------------------------------------------------------------------------------------------
CORNERSTONE STRATEGIC VALUE FUND, INC.
Pro Forma
Portfolio of Investments (@)
December 31, 2003
(Unaudited)
                                                          TARGET FUND            ACQUIRING FUND                Pro Forma
                                         % of                PGF                       CLM                   Combined Fund
                                          Net       Shares/       Market      Shares/      Market       Shares/        Market
                                        Assets        Par        Value ($)       Par       Value          Par         Value ($)
                                      ------------------------------------------------------------------------------------------
EQUITY SECURITIES                       99.51%

CLOSED-END DOMESTIC FUNDS -              6.23%
Adams Express Co.                        1.17%                                  49,500     614,295         49,500        614,295
General American Investor Co. Inc.       0.59%                                  10,500     312,165         10,500        312,165
Salomon Brothers Fund, Inc. (The)        0.42%                                  18,400     221,352         18,400        221,352
Tri-Continental Corp.                    2.40%      38,000        623,200       39,000     639,600         77,000      1,262,800
Zweig Fund, Inc.                         1.64%      66,200        324,380      110,400     540,960        176,600        865,340
                                                              -----------               ----------                    ----------
                                                                  947,580                2,328,372                     3,275,952

CONSUMER DISCRETIONARY -                12.92%
Bed Bath & Beyond Inc. *                 0.08%                                   1,000      43,350          1,000         43,350
Best Buy Co., Inc.                       0.22%       1,250         65,300        1,000      52,240          2,250        117,540
Carnival Corp.                           0.36%       2,700        107,271        2,100      83,433          4,800        190,704
Circuit City Stores, Inc.                0.02%       1,000         10,130                                   1,000         10,130
Clear Channel Communications, Inc.       0.43%       2,700        126,441        2,100      98,343          4,800        224,784
Comcast Corp., Class A *                 0.47%       3,655        120,140        3,882     127,601          7,537        247,741
Comcast Corp., Special Class A*          0.24%       4,100        128,248                                   4,100        128,248
Costco Wholesale Corp. *                 0.11%                                   1,500      55,770          1,500         55,770
CVS Corp.                                0.17%       1,000         36,120        1,500      54,180          2,500         90,300
Delphi Corp.                             0.09%       2,600         26,546        2,000      20,420          4,600         46,966
Eastman Kodak Co.                        0.07%       1,400         35,938                                   1,400         35,938
Federated Department Stores, Inc.        0.09%       1,000         47,130                                   1,000         47,130
Ford Motor Co.                           0.37%       5,800         92,800        6,500     104,000         12,300        196,800
Fortune Brands, Inc.                     0.14%                                   1,000      71,490          1,000         71,490
Gannett Co., Inc.                        0.17%                                   1,000      89,160          1,000         89,160
Gap, Inc. (The)                          0.23%       2,500         58,025        2,700      62,667          5,200        120,692
General Motors Corp.                     0.46%       2,600        138,840        1,900     101,460          4,500        240,300
Goodyear Tire &  Rubber Co. (The) *      0.04%                                   2,500      19,650          2,500         19,650
Harley-Davidson, Inc.                    0.22%       1,400         66,542        1,000      47,530          2,400        114,072
Hilton Hotels Corp.                      0.10%       1,700         29,121        1,500      25,695          3,200         54,816
Home Depot, Inc. (The)                   0.92%       7,500        266,175        6,100     216,489         13,600        482,664
Kohl's Corp. *                           0.17%       1,000         44,940        1,000      44,940          2,000         89,880
Limited Brands                           0.09%       2,500         45,075                                   2,500         45,075




                                      -10-


Lowe's Companies, Inc.                   0.53%       2,500        138,475        2,500     138,475          5,000        276,950
Marriott International, Inc., Class A    0.18%       1,100         50,820        1,000      46,200          2,100         97,020
Mattel, Inc.                             0.05%       1,500         28,905                                   1,500         28,905
May Department Stores Co. (The)          0.13%       1,400         40,698        1,000      29,070          2,400         69,768
McDonald's Corp.                         0.29%       4,000         99,320        2,100      52,143          6,100        151,463
Monsanto Co.                             0.03%         580         16,692                                     580         16,692
NIKE, Inc., Class B                      0.30%       1,300         88,998        1,000      68,460          2,300        157,458
Omnicom Group Inc.                       0.27%         600         52,398        1,000      87,330          1,600        139,728
Reebok International Ltd.                0.11%                                   1,500      58,980          1,500         58,980
Sears, Roebuck & Co.                     0.14%       1,600         72,784                                   1,600         72,784
Staples, Inc. *                          0.16%       1,500         40,950        1,500      40,950          3,000         81,900
Starbucks Corp. *                        0.18%       1,700         56,202        1,200      39,672          2,900         95,874
Target Corp.                             0.35%       1,600         61,440        3,200     122,880          4,800        184,320
Time Warner Inc. *                       0.85%      14,250        256,358       10,500     188,895         24,750        445,253
TJX Companies, Inc. (The)                0.10%       2,500         55,125                                   2,500         55,125
Toys "R" Us, Inc.*                       0.02%       1,000         12,640                                   1,000         12,640
Viacom Inc., non-voting Class B          0.96%       5,400        239,652        6,000     266,280         11,400        505,932
Wal-Mart Stores, Inc.                    2.45%      11,000        583,550       13,300     705,565         24,300      1,289,115
Walt Disney Co. (The)                    0.50%       6,500        151,645        4,700     109,651         11,200        261,296
Yum! Brands, Inc. *                      0.07%                                   1,000      34,400          1,000         34,400
                                                              -----------               -----------                   -----------
                                                                3,491,434                3,307,369                     6,798,803

CONSUMER STAPLES -                       7.86%
Albertson's, Inc.                        0.11%                                   2,500      56,625          2,500         56,625
Altria Group, Inc.                       0.96%       4,400        239,448        4,900     266,658          9,300        506,106
Anheuser-Busch Companies, Inc.           0.47%       2,500        131,700        2,200     115,896          4,700        247,596
Archer-Daniels-Midland Co.               0.16%       3,045         46,345        2,415      36,756          5,460         83,101
Campbell Soup Co.                        0.10%       2,000         53,600                                   2,000         53,600
Coca-Cola Co. (The)                      1.23%       6,300        319,725        6,500     329,875         12,800        649,600
Coca-Cola Enterprises Inc.               0.06%       1,500         32,805                                   1,500         32,805
Colgate-Palmolive Co.                    0.20%       1,100         55,055        1,000      50,050          2,100        105,105
ConAgra Foods, Inc.                      0.22%       2,500         65,975        1,900      50,141          4,400        116,116
General Mills, Inc.                      0.22%                                   2,500     113,250          2,500        113,250
Gillette Co. (The)                       0.39%       3,000        110,190        2,600      95,498          5,600        205,688
H.J. Heinz Co.                           0.11%       1,600         58,288                                   1,600         58,288
Kimberly-Clark Corp.                     0.38%       2,500        147,725          900      53,181          3,400        200,906
Kroger Co. (The) *                       0.17%       1,300         24,063        3,500      64,785          4,800         88,848
Pepsi Bottling Group, Inc.               0.05%       1,000         24,180                                   1,000         24,180
PepsiCo, Inc.                            0.81%       4,000        186,480        5,100     237,762          9,100        424,242
Procter & Gamble Co. (The)               1.29%       3,000        299,640        3,800     379,544          6,800        679,184
Safeway Inc.*                            0.10%       2,500         54,775                                   2,500         54,775
Sara Lee Corp.                           0.05%       1,300         28,223                                   1,300         28,223
Sysco Corp.                              0.41%       2,500         93,075        3,300     122,859          5,800        215,934
Walgreen Co.                             0.37%       2,100         76,398        3,200     116,416          5,300        192,814
                                                              -----------               -----------                   -----------
                                                                2,047,690                2,089,296                     4,136,986




                                      -11-



ENERGY -                                 5.79%
Anadarko Petroleum Corp.                 0.20%       1,200         61,212          900      45,909          2,100        107,121
Baker Hughes Inc.                        0.22%       1,100         35,376        2,500      80,400          3,600        115,776
CenterPoint Energy, Inc.                 0.07%       1,400         13,566        2,500      24,225          3,900         37,791
ChevronTexaco Corp.                      1.26%       4,325        373,637        3,340     288,543          7,665        662,180
ConocoPhillips                           0.53%       2,509        164,515        1,728     113,305          4,237        277,820
El Paso  Corp.                           0.04%       2,500         20,475                                   2,500         20,475
Exxon Mobil Corp.                        2.77%      16,500        676,500       19,000     779,000         35,500      1,455,500
Marathon Oil Corp.                       0.09%       1,500         49,635                                   1,500         49,635
Reliant Resources, Inc. *                0.04%       1,104          8,125        1,971      14,506          3,075         22,631
Schlumberger Ltd.                        0.48%       2,600        142,272        2,000     109,440          4,600        251,712
Unocal Corp.                             0.08%       1,200         44,196                                   1,200         44,196
                                                              -----------               -----------
                                                                1,589,509                1,455,328                     3,044,837

FINANCIALS -                            19.16%
AFLAC Inc.                               0.31%       2,600         94,068        1,900      68,742          4,500        162,810
Allstate Corp. (The)                     0.47%       3,300        141,966        2,500     107,550          5,800        249,516
American Express Co.                     0.65%       4,100        197,743        3,000     144,690          7,100        342,433
American International Group, Inc.       1.89%       5,989        396,951        9,042     599,304         15,031        996,255
Aon Corp.                                0.05%       1,200         28,728                                   1,200         28,728
Bank of America Corp.                    1.25%       4,300        345,849        3,900     313,677          8,200        659,526
Bank of New York Co., Inc. (The)         0.37%       3,400        112,608        2,500      82,800          5,900        195,408
Bank One Corp.                           0.47%       2,800        127,652        2,600     118,534          5,400        246,186
BB&T Corp.                               0.12%                                   1,600      61,824          1,600         61,824
Charles Schwab Corp. (The)               0.14%       3,500         41,440        2,500      29,600          6,000         71,040
Citigroup Inc.                           2.41%      13,000        631,020       13,100     635,874         26,100      1,266,894
Fannie Mae                               0.53%       1,500        112,590        2,200     165,132          3,700        277,722
Fifth Third Bancorp                      0.45%       2,000        118,200        2,000     118,200          4,000        236,400
FleetBoston Financial Corp.              0.54%       4,100        178,965        2,400     104,760          6,500        283,725
Franklin Resources, Inc.                 0.12%       1,200         62,472                                   1,200         62,472
Freddie Mac                              0.45%       1,600         93,312        2,500     145,800          4,100        239,112
Goldman Sachs Group, Inc. (The)          0.53%       1,500        148,095        1,300     128,349          2,800        276,444
Hartford Financial Services Group,
  Inc. (The)                             0.11%       1,000         59,030                                   1,000         59,030
HSBC Holdings plc, ADR                   0.34%       1,337        105,382          963      75,904          2,300        181,286
J. P. Morgan Chase & Co.                 0.85%       6,200        227,726        6,000     220,380         12,200        448,106
John Hancock Financial Services, Inc.    0.18%       2,500         93,750                                   2,500         93,750
Lehman Brothers Holdings Inc.            0.16%       1,100         84,942                                   1,100         84,942
Marsh & McLennan Companies, Inc.         0.60%       2,600        124,514        4,000     191,560          6,600        316,074
MBNA Corp.                               0.24%       2,100         52,185        3,000      74,550          5,100        126,735
Mellon Financial Corp.                   0.26%       2,500         80,275        1,800      57,798          4,300        138,073




                                      -12-


Merrill Lynch & Co., Inc.                0.64%       3,700        217,005        2,000     117,300          5,700        334,305
MetLife, Inc.                            0.40%       3,500        117,845        2,700      90,909          6,200        208,754
Morgan Stanley                           0.66%       2,500        144,675        3,500     202,545          6,000        347,220
National City Corp.                      0.30%       2,500         84,850        2,200      74,668          4,700        159,518
Northern Trust Corp.                     0.09%       1,000         46,420                                   1,000         46,420
PNC Financial Services Group             0.11%                                   1,100      60,203          1,100         60,203
Prudential Financial, Inc.               0.20%                                   2,500     104,425          2,500        104,425
St. Paul Companies, Inc. (The)           0.08%       1,000         39,650                                   1,000         39,650
State Street Corp.                       0.10%                                   1,000      52,080          1,000         52,080
SunTrust Banks, Inc.                     0.15%                                   1,100      78,650          1,100         78,650
Travelers Property Casualty Corp.,
  Class A                                0.05%         712         11,947          738      12,383          1,450         24,330
Travelers Property Casualty Corp.,
  Class B                                0.10%       1,464         24,844        1,517      25,743          2,981         50,587
U.S. Bancorp                             0.59%       6,201        184,666        4,200     125,076         10,401        309,742
UnumProvident Corp.                      0.03%       1,100         17,347                                   1,100         17,347
Wachovia Corp.                           0.58%       3,000        139,770        3,600     167,724          6,600        307,494
Washington Mutual, Inc.                  0.45%       2,800        112,336        3,150     126,378          5,950        238,714
Wells Fargo & Co.                        1.14%       5,400        318,006        4,800     282,672         10,200        600,678
                                                              -----------               -----------                   -----------
                                                                5,118,824                4,965,784                    10,084,608

HEALTHCARE -                            12.28%
Abbott Laboratories                      0.62%       3,000        139,800        4,000     186,400          7,000        326,200
Allergan, Inc.                           0.15%       1,000         76,810                                   1,000         76,810
Amgen Inc. *                             0.92%       4,300        265,740        3,500     216,300          7,800        482,040
Baxter International Inc.                0.31%       2,800         85,456        2,500      76,300          5,300        161,756
Becton, Dickinson & Co.                  0.09%       1,200         49,368                                   1,200         49,368
Boston Scientific Corp. *                0.35%       2,000         73,520        3,000     110,280          5,000        183,800
Bristol-Myers Squibb Co.                 0.59%       6,400        183,040        4,500     128,700         10,900        311,740
Cardinal Health, Inc.                    0.34%       1,950        119,262        1,000      61,160          2,950        180,422
Eli Lilly & Co.                          0.78%       2,800        196,924        3,000     210,990          5,800        407,914
Guidant Corp.                            0.16%       1,400         84,280                                   1,400         84,280
HCA Inc.                                 0.29%       1,500         64,440        2,000      85,920          3,500        150,360
HEALTHSOUTH Corp. *                      0.04%       1,800          8,244        2,500      11,450          4,300         19,694
Johnson & Johnson                        1.47%       7,500        387,450        7,500     387,450         15,000        774,900
McKesson Corp.                           0.14%       1,300         41,808        1,000      32,160          2,300         73,968
Medco Health Solutions, Inc. *           0.11%         964         32,766          723      24,575          1,687         57,341
Medtronic, Inc.                          0.77%       4,000        194,440        4,300     209,023          8,300        403,463
Merck & Co. Inc.                         1.01%       5,500        254,100        6,000     277,200         11,500        531,300
Pfizer Inc.                              2.71%      19,860        701,654       20,500     724,265         40,360      1,425,919
Schering-Plough Corp.                    0.22%       4,200         73,038        2,500      43,475          6,700        116,513
Tenet Heathcare Corp. *                  0.07%       2,250         36,113                                   2,250         36,113
UnitedHealth Group Inc.                  0.55%       2,000        116,360        3,000     174,540          5,000        290,900
Wyeth                                    0.61%       4,200        178,290        3,300     140,085          7,500        318,375
                                                              -----------               -----------                   -----------
                                                                3,362,903                3,100,273                     6,463,176




                                      -13-



INDUSTRIALS -                           11.06%
3M Co.                                   0.71%       2,400        204,072        2,000     170,060          4,400        374,132
Automatic Data Processing, Inc.          0.37%       2,900        114,869        2,000      79,220          4,900        194,089
Boeing Co. (The)                         0.45%       2,600        109,564        3,000     126,420          5,600        235,984
Caterpillar Inc.                         0.46%       1,600        132,832        1,300     107,926          2,900        240,758
Cendant Corp. *                          0.25%       3,300         73,491        2,700      60,129          6,000        133,620
Concord EFS, Inc. *                      0.14%       2,500         37,100        2,500      37,100          5,000         74,200
CSX Corp.                                0.07%       1,000         35,940                                   1,000         35,940
Emerson Electric Co.                     0.43%       2,000        129,500        1,500      97,125          3,500        226,625
FedEx Corp.                              0.26%       1,000         67,500        1,000      67,500          2,000        135,000
General Dynamics Corp.                   0.10%         600         54,234                                     600         54,234
General Electric Co.                     3.25%      26,200        811,676       29,000     898,420         55,200      1,710,096
Honeywell International Inc.             0.30%       2,000         66,860        2,800      93,604          4,800        160,464
Illinois Tool Works Inc.                 0.38%       1,400        117,474        1,000      83,910          2,400        201,384
IMS Health Inc.                          0.07%       1,400         34,804                                   1,400         34,804
Lockheed Martin Corp.                    0.39%       2,500        128,500        1,500      77,100          4,000        205,600
Masco Corp.                              0.22%       2,500         68,525        1,700      46,597          4,200        115,122
Paychex, Inc.                            0.30%       1,700         63,240        2,500      93,000          4,200        156,240
Raytheon Co.                             0.09%       1,600         48,064                                   1,600         48,064
Southwest Airlines Co.                   0.20%       3,750         60,525        2,700      43,578          6,450        104,103
Transocean Inc. *                        0.11%                                   2,500      60,025          2,500         60,025
Tyco International Ltd.                  0.67%       6,397        169,521        7,000     185,500         13,397        355,021
Union Pacific Corp.                      0.26%       1,000         69,480        1,000      69,480          2,000        138,960
United Parcel Service, Inc., Class B     0.85%       2,500        186,375        3,500     260,925          6,000        447,300
United Technologies Corp.                0.49%         100         94,770        1,700     161,109          1,800        255,879
Waste Management, Inc.                   0.24%       2,500         74,000        1,700      50,320          4,200        124,320
                                                              -----------               -----------                   -----------
                                                                2,952,916                2,869,048                     5,821,964

INFORMATION TECHNOLOGY -                16.21%
Adobe Systems Inc.                       0.08%       1,100         43,230                                   1,100         43,230
Agere Systems Inc.,  Class A *           0.00%         125            381          115         351            240            732
Agere Systems Inc.,  Class B *           0.03%       3,068          8,897        2,830       8,207          5,898         17,104
Agilent Technologies, Inc.               0.18%       1,500         43,860        1,800      52,632          3,300         96,492
Altera Corp. *                           0.15%       1,900         43,130        1,500      34,050          3,400         77,180
Analog Devices, Inc.                     0.23%       1,700         77,605        1,000      45,650          2,700        123,255
Apple Computer, Inc. *                   0.06%       1,500         32,055                                   1,500         32,055
Applied Materials, Inc. *                0.33%       4,900        110,005        2,900      65,105          7,800        175,110
Cisco Systems, Inc. *                    1.68%      19,500        473,655       16,900     410,501         36,400        884,156
Computer Associates
  International, Inc.                    0.14%       2,700         73,818                                   2,700         73,818
Corning Inc. *                           0.06%                                   3,000      31,290          3,000         31,290
Dell Inc. *                              0.72%       4,700        159,612        6,500     220,740         11,200        380,352
Electronic Arts Inc. *                   0.18%       2,000         95,560                                   2,000         95,560




                                      -14-


Electronic Data Systems Corp.            0.16%       2,500         61,350        1,000      24,540          3,500         85,890
EMC Corp. *                              0.28%       4,500         58,140        7,000      90,440         11,500        148,580
First Data Corp.                         0.39%                                   5,000     205,450          5,000        205,450
Hewlett-Packard Co.                      0.69%       8,100        186,057        7,800     179,166         15,900        365,223
Intel Corp.                              2.27%      17,600        566,720       19,500     627,900         37,100      1,194,620
International Business Machines Corp.    1.92%       5,500        509,740        5,400     500,472         10,900      1,010,212
Linear Technology Corp.                  0.20%       1,500         63,105        1,000      42,070          2,500        105,175
LSI Logic Corp. *                        0.03%       1,500         13,305                                   1,500         13,305
Maxim Integrated Products, Inc.          0.22%       1,300         64,740        1,000      49,800          2,300        114,540
Micron Technology, Inc. *                0.13%       2,600         35,022        2,500      33,675          5,100         68,697
Microsoft Corp.                          3.05%      28,100        773,874       30,200     831,708         58,300      1,605,582
Motorola, Inc.                           0.37%       7,100         99,897        6,600      92,862         13,700        192,759
NVIDA Corp. *                            0.04%       1,000         23,250                                   1,000         23,250
Oracle Corp. *                           0.76%      17,800        234,960       12,300     162,360         30,100        397,320
QUALCOMM Inc.                            0.41%       1,500         80,895        2,500     134,825          4,000        215,720
Sanmina-SCI Corp. *                      0.06%                                   2,500      31,525          2,500         31,525
Siebel Systems, Inc. *                   0.07%                                   2,500      34,675          2,500         34,675
Solectron Corp. *                        0.08%       3,700         21,867        3,000      17,730          6,700         39,597
Sun Microsystems, Inc. *                 0.15%      10,000         44,900        7,500      33,675         17,500         78,575
SunGard Data Systems, Inc. *             0.13%       2,500         69,275                                   2,500         69,275
Texas Instruments Inc.                   0.58%       5,400        158,652        4,900     143,962         10,300        302,614
Yahoo! Inc. *                            0.38%       2,500        112,925        1,900      85,823          4,400        198,748
                                                              -----------               -----------                   -----------
                                                                4,340,482                4,191,184                     8,531,666

MATERIALS -                              2.44%
Air Products & Chemicals, Inc.           0.10%                                   1,000      52,830          1,000         52,830
Alcoa Inc.                               0.53%       4,200        159,600        3,100     117,800          7,300        277,400
Dow Chemical Co. (The)                   0.43%       2,700        112,239        2,700     112,239          5,400        224,478
E. I. du Pont de Nemours & Co.           0.48%       3,300        151,437        2,200     100,958          5,500        252,395
Georgia-Pacific Corp.                    0.12%       1,000         30,670        1,000      30,670          2,000         61,340
International Paper Co.                  0.37%       2,500        107,775        2,000      86,220          4,500        193,995
Praxair, Inc.                            0.22%                                   3,000     114,600          3,000        114,600
Rohm & Haas Co.                          0.08%       1,000         42,710                                   1,000         42,710
Weyerhaeuser Co.                         0.12%                                   1,000      64,000          1,000         64,000
                                                              -----------               -----------                   -----------
                                                                  604,431                  679,317                     1,283,748

TELECOMMUNICATION SERVICES -             3.55%
ALLTEL Corp                              0.13%       1,500         69,870                                   1,500         69,870
AT&T Corp.                               0.18%       2,260         45,878        2,400      48,720          4,660         94,598
AT&T Wireless Services Inc. *            0.20%       8,534         68,187        4,522      36,131         13,056        104,318
BellSouth Corp.                          0.67%       6,000        169,800        6,500     183,950         12,500        353,750
Lucent Technologies Inc. *               0.12%      11,600         32,944       10,700      30,388         22,300         63,332
Nextel Communications, Inc.,
  Class A *                              0.13%       2,500         70,150                                   2,500         70,150
SBC Communications Inc.                  0.54%       8,200        213,774        2,500      70,150         10,700        283,924
Sprint Corp. (FON Group)                 0.52%       4,000         65,680        7,900     205,953         11,900        271,633
Sprint Corp. (PCS Group) *               0.11%       1,800         10,116        3,000      49,260          4,800         59,376
Verizon Communications Inc.              0.94%       6,200        217,496        7,900     277,132         14,100        494,628
                                                              -----------               -----------                   -----------
                                                                  963,895                  901,684                     1,865,579



                                      -15-



UTILITIES -                              2.01%
American Electric Power Co., Inc.        0.16%       1,500         45,765        1,200      36,612          2,700         82,377
Dominion Resources, Inc.                 0.25%       1,100         70,213        1,000      63,830          2,100        134,043
Duke Energy Corp.                        0.21%       2,500         51,125        2,800      57,260          5,300        108,385
Edison International *                   0.17%       1,500         32,895        2,500      54,825          4,000         87,720
Exelon Corp.                             0.19%       1,500         99,540                                   1,500         99,540
FirstEnergy Corp.                        0.17%                                   2,500      88,000          2,500         88,000
FPL Group, Inc.                          0.12%       1,000         65,420                                   1,000         65,420
Progress Energy, Inc.                    0.09%       1,000         45,260                                   1,000         45,260
Public Service Enterprises Group Inc,    0.08%       1,000         43,800                                   1,000         43,800
Scottish Power plc, ADR                  0.21%                                   4,000     108,720          4,000        108,720
Southern Co. (The)                       0.14%                                   2,400      72,600          2,400         72,600
TXU Corp.                                0.10%       1,200         28,464        1,000      23,720          2,200         52,184
Xcel Energy, Inc.                        0.13%       1,600         27,168        2,500      42,450          4,100         69,618
                                                              -----------               -----------                   -----------
                                                                  509,650                  548,017                     1,057,667

TOTAL EQUITY SECURITIES                 99.51%                 25,929,314               26,435,672                    52,364,986
                                                              -----------               -----------                   -----------

SHORT-TERM INVESTMENTS -                 2.30%
   REPURCHASE AGREEMENTS -               2.30%
Bear, Stearns & Co. Inc.                 0.26%     138,234        138,234                                 138,234        138,234
(Agreement dated 12/31/03 to
be repurchased at $138,241),
0.85%,  01/02/04

Bear, Stearns & Co. Inc.                 0.83%     438,900        438,900                                 438,900        438,900
(Agreement dated 12/31/03 to
be repurchased at $438,926),
1.06%**, 01/02/04 ***

Bear, Stearns & Co. Inc.                 0.00%       2,278          2,278                                   2,278          2,278
(Agreement dated 12/31/03 to
be repurchased at $2,278),
0.94%**, 01/02/04 ***



                                      -16-



Bear, Stearns & Co. Inc.                 0.27%                                 139,977     139,977        139,977        139,977
(Agreement dated 12/31/03 to
be repurchased at $139,984),
0.85%,  01/02/04

Bear, Stearns & Co. Inc.                 0.81%                                 425,588     425,588        425,588        425,588
(Agreement dated 12/31/03 to
be repurchased at $425,613),
1.06%**,  01/02/04 ***

Bear, Stearns & Co. Inc.                 0.12%                                  65,644      65,644         65,644         65,644
(Agreement dated 12/31/03 to
be repurchased at $65,647),
0.94%**,  01/02/04 ***
                                                              -----------               -----------                   -----------

TOTAL SHORT-TERM INVESTMENTS             2.30%                    579,412                  631,209                     1,210,621


                                                              -----------               -----------                   -----------
TOTAL INVESTMENTS AT MARKET            101.81%                 26,508,726               27,066,881                    53,575,607
                                                              -----------               -----------                   -----------
TOTAL INVESTMENTS AT COST                                      29,716,897               24,952,427                    54,669,324
                                                              -----------               -----------                   -----------

@      No adjustments are shown to the unaudited pro forma combined portfolio of
       investments due to the fact that upon consummation of the merger,
       securities would need to be sold in order for Acquiring Fund to comply
       with its prospectus restrictions. The foregoing sentence shall not
       restrict in any way the ability of the investment adviser of any of the
       funds from buying or selling securities in the normal course of such
       fund's business and operations.

*     Non-income producing securities

**   Stated interest rate, before rebate earned by borrower of securities on loan

*** Represents investment purchased with cash collateral received for securities
    on loan.

ADR  American Depositary Receipt





                                      -17-






------------------------------------------------------------------------------------------------------------------------------------
CORNERSTONE STRATEGIC VALUE FUND, INC.
Pro Forma
Portfolio of Investments (@)
December 31, 2003
(Unaudited)
                                                TARGET FUNDS          ACQUIRING FUND           Pro Forma
                                   % of                 PGF                 MGC                  CLM              Combined Fund
                                    Net       Shares/  Market       Shares/    Market    Shares/     Market     Shares/    Market
                                  Assets        Par   Value ($)      Par      Value ($)    Par       Value        Par     Value ($)
                                ----------------------------------------------------------------------------------------------------
EQUITY SECURITIES                 95.21%

CLOSED-END DOMESTIC FUNDS -        2.04%
Adams Express Co.                  0.38%                                                  49,500     614,295     49,500      614,295
General American
  Investor Co. Inc.                0.19%                                                  10,500     312,165     10,500      312,165
Salomon Brothers Fund,
  Inc. (The)                       0.14%                                                  18,400     221,352     18,400      221,352
Tri-Continental Corp.              0.78%      38,000    623,200                           39,000     639,600     77,000    1,262,800
Zweig Fund, Inc.                   0.54%      66,200    324,380                          110,400     540,960    176,600      865,340
                                                     ----------            ------------           ----------           -------------
                                                        947,580                      0             2,328,372              3,275,952

CONSUMER DISCRETIONARY -          13.68%
Bed Bath & Beyond Inc. *           0.03%                                                  1,000       43,350     1,000       43,350
Best Buy Co., Inc.                 0.07%       1,250     65,300                           1,000       52,240     2,250      117,540
Carnival Corp.                     0.12%       2,700    107,271                           2,100       83,433     4,800      190,704
Carter's, Inc.*                    0.04%                             2,500      63,625                           2,500       63,625
Circuit City Stores, Inc.          0.01%       1,000     10,130                                                  1,000       10,130
Clear Channel
  Communications, Inc.             0.14%       2,700    126,441                           2,100       98,343     4,800      224,784
Comcast Corp., Class A *           0.15%       3,655    120,140                           3,882      127,601     7,537      247,741
Comcast Corp., Special
  Class A*                         0.08%       4,100    128,248                                                  4,100      128,248
Costco Wholesale Corp. *           0.03%                                                  1,500       55,770     1,500       55,770
CVS Corp.                          0.06%       1,000     36,120                           1,500       54,180     2,500       90,300
Delphi Corp.                       0.03%       2,600     26,546                           2,000       20,420     4,600       46,966
Eastman Kodak Co.                  0.02%       1,400     35,938                                                  1,400       35,938
Federated Department
  Stores, Inc.                     0.03%       1,000     47,130                                                  1,000       47,130
Ford Motor Co.                     0.12%       5,800     92,800                           6,500      104,000    12,300      196,800
Fortune Brands, Inc.               0.04%                                                  1,000       71,490     1,000       71,490
Furniture Brands
  International, Inc.              1.82%                           100,100   2,935,933                         100,100    2,935,933
Gannett Co., Inc.                  0.06%                                                  1,000       89,160     1,000       89,160
Gap, Inc. (The)                    0.08%       2,500     58,025                           2,700       62,667     5,200      120,692
General Motors Corp.               0.15%       2,600    138,840                           1,900      101,460     4,500      240,300
Gildan Activewear Inc.,
  Class A*                         0.99%                            51,500   1,590,320                          51,500    1,590,320
Goodyear Tire & Rubber
  Co. (The) *                      0.01%                                                  2,500       19,650     2,500       19,650
Harley-Davidson, Inc.              0.07%       1,400     66,542                           1,000       47,530     2,400      114,072
Hilton Hotels Corp.                0.03%       1,700     29,121                           1,500       25,695     3,200       54,816



                                      -18-


Home Depot, Inc. (The)             0.30%       7,500    266,175                           6,100      216,489    13,600      482,664
Kohl's Corp. *                     0.06%       1,000     44,940                           1,000       44,940     2,000       89,880
Limited Brands                     0.03%       2,500     45,075                                                  2,500       45,075
Lowe's Companies, Inc.             0.17%       2,500    138,475                           2,500      138,475     5,000      276,950
Marriott International,
  Inc., Class A                    0.06%       1,100     50,820                           1,000       46,200     2,100       97,020
Martek Biosciences Corp.*          1.23%                            30,500   1,981,585                          30,500    1,981,585
Mattel, Inc.                       0.02%       1,500     28,905                                                  1,500       28,905
May Department Stores Co.
  (The)                            0.04%       1,400     40,698                           1,000       29,070     2,400       69,768
McDonald's Corp.                   0.09%       4,000     99,320                           2,100       52,143     6,100      151,463
Monsanto Co.                       0.01%         580     16,692                                                    580       16,692
Multimedia Games, Inc.*            1.10%                            43,000   1,767,300                          43,000    1,767,300
NIKE, Inc., Class B                0.10%       1,300     88,998                           1,000       68,460     2,300      157,458
Omnicom Group Inc.                 0.09%         600     52,398                           1,000       87,330     1,600      139,728
Reebok International Ltd.          0.04%                                                  1,500       58,980     1,500       58,980
Sears, Roebuck & Co.               0.05%       1,600     72,784                                                  1,600       72,784
Staples, Inc. *                    0.05%       1,500     40,950                           1,500       40,950     3,000       81,900
Starbucks Corp. *                  0.06%       1,700     56,202                           1,200       39,672     2,900       95,874
Target Corp.                       0.11%       1,600     61,440                           3,200      122,880     4,800      184,320
The Cheesecake Factory Inc.*       1.03%                            37,700   1,659,931                          37,700    1,659,931
Thor Industries, Inc.              1.01%                            28,800   1,619,136                          28,800    1,619,136
Time Warner Inc. *                 0.28%      14,250    256,358                          10,500      188,895    24,750      445,253
TJX Companies, Inc. (The)          0.03%       2,500     55,125                                                  2,500       55,125
Toys "R" Us, Inc.*                 0.01%       1,000     12,640                                                  1,000       12,640
Tractor Supply Company*            0.46%                            19,200     746,688                          19,200      746,688
United Natural Foods, Inc.*        1.77%                            79,200   2,844,072                          79,200    2,844,072
Viacom Inc., non-voting
  Class B                          0.31%       5,400    239,652                           6,000      266,280    11,400      505,932
Wal-Mart Stores, Inc.              0.80%      11,000    583,550                          13,300      705,565    24,300    1,289,115
Walt Disney Co. (The)              0.16%       6,500    151,645                           4,700      109,651    11,200      261,296
Yum! Brands, Inc. *                0.02%                                                  1,000       34,400     1,000       34,400
                                                     ----------            ------------           ----------           -------------
                                                      3,491,434             15,208,590             3,307,369             22,007,393

CONSUMER STAPLES -                 5.22%
Albertson's, Inc.                  0.04%                                                  2,500       56,625     2,500       56,625
Altria Group, Inc.                 0.31%       4,400    239,448                           4,900      266,658     9,300      506,106
Anheuser-Busch Companies,
  Inc.                             0.15%       2,500    131,700                           2,200      115,896     4,700      247,596
Archer-Daniels-Midland Co.         0.05%       3,045     46,345                           2,415       36,756     5,460       83,101
Campbell Soup Co.                  0.03%       2,000     53,600                                                  2,000       53,600
Coca-Cola Co. (The)                0.40%       6,300    319,725                           6,500      329,875    12,800      649,600
Coca-Cola Enterprises Inc.         0.02%       1,500     32,805                                                  1,500       32,805
Colgate-Palmolive Co.              0.07%       1,100     55,055                           1,000       50,050     2,100      105,105
ConAgra Foods, Inc.                0.07%       2,500     65,975                           1,900       50,141     4,400      116,116
General Mills, Inc.                0.07%                                                  2,500      113,250     2,500      113,250
Gillette Co. (The)                 0.13%       3,000    110,190                           2,600       95,498     5,600      205,688



                                      -19-


H.J. Heinz Co.                     0.04%       1,600     58,288                                                  1,600       58,288
Kimberly-Clark Corp.               0.12%       2,500    147,725                             900       53,181     3,400      200,906
Kroger Co. (The) *                 0.06%       1,300     24,063                           3,500       64,785     4,800       88,848
Panera Bread Co. Class A*          1.04%                            42,300   1,672,119                          42,300    1,672,119
Pepsi Bottling Group, Inc.         0.02%       1,000     24,180                                                  1,000       24,180
PepsiCo, Inc.                      0.26%       4,000    186,480                           5,100      237,762     9,100      424,242
Performance Food Group Co.*        0.88%                            39,300   1,421,481                          39,300    1,421,481
Philadelphia Suburban Corp.        0.73%                            53,077   1,173,002                          53,077    1,173,002
Procter & Gamble Co. (The)         0.42%       3,000    299,640                           3,800      379,544     6,800      679,184
Safeway Inc.*                      0.03%       2,500     54,775                                                  2,500       54,775
Sara Lee Corp.                     0.02%       1,300     28,223                                                  1,300       28,223
Sysco Corp.                        0.13%       2,500     93,075                           3,300      122,859     5,800      215,934
Walgreen Co.                       0.12%       2,100     76,398                           3,200      116,416     5,300      192,814
                                                     ----------            ------------                                -------------
                                                      2,047,690              4,266,602             2,089,296              8,403,588

ENERGY -                           5.40%
Anadarko Petroleum Corp.           0.07%       1,200     61,212                             900       45,909     2,100      107,121
Baker Hughes Inc.                  0.07%       1,100     35,376                           2,500       80,400     3,600      115,776
CenterPoint Energy, Inc.           0.02%       1,400     13,566                           2,500       24,225     3,900       37,791
ChevronTexaco Corp.                0.41%       4,325    373,637                           3,340      288,543     7,665      662,180
ConocoPhillips                     0.17%       2,509    164,515                           1,728      113,305     4,237      277,820
El Paso  Corp.                     0.01%       2,500     20,475                                                  2,500       20,475
Exxon Mobil Corp.                  0.90%      16,500    676,500                          19,000      779,000    35,500    1,455,500
FMC Technologies, Inc.*            1.53%                           105,800   2,465,140                         105,800    2,465,140
Marathon Oil Corp.                 0.03%       1,500     49,635                                                  1,500       49,635
Reliant Resources, Inc. *          0.01%       1,104      8,125                           1,971       14,506     3,075       22,631
Schlumberger Ltd.                  0.16%       2,600    142,272                           2,000      109,440     4,600      251,712
Ultra Petroleum Corp.*             1.23%                            80,300   1,976,986                          80,300    1,976,986
Unocal Corp.                       0.00%                                                                             0            0
Western Gas Resources,
  Inc.                             0.75%                            25,400   1,200,150                          25,400    1,200,150
Unocal Corp.                       0.03%       1,200     44,196                                                  1,200       44,196
                                                     ----------            ------------           ----------           -------------
                                                      1,589,509              5,642,276             1,455,328              8,687,113

FINANCIALS -                      12.15%
Affiliated Managers
  Group, Inc.*                     1.75%                            40,400   2,811,436                          40,400    2,811,436
AFLAC Inc.                         0.10%       2,600     94,068                           1,900       68,742     4,500      162,810
Allstate Corp. (The)               0.16%       3,300    141,966                           2,500      107,550     5,800      249,516
American Express Co.               0.21%       4,100    197,743                           3,000      144,690     7,100      342,433
American International
  Group, Inc.                      0.62%       5,989    396,951                           9,042      599,304    15,031      996,255
Aon Corp.                          0.02%       1,200     28,728                                                  1,200       28,728
Bank of America Corp.              0.41%       4,300    345,849                           3,900      313,677     8,200      659,526
Bank of New York Co.,
  Inc. (The)                       0.12%       3,400    112,608                           2,500       82,800     5,900      195,408
Bank One Corp.                     0.15%       2,800    127,652                           2,600      118,534     5,400      246,186



                                      -20-


BB&T Corp.                         0.04%                                                  1,600       61,824     1,600       61,824
Charles Schwab Corp. (The)         0.04%       3,500     41,440                           2,500       29,600     6,000       71,040
Citigroup Inc.                     0.79%      13,000    631,020                          13,100      635,874    26,100    1,266,894
Direct General Corp.               0.84%                            41,000   1,357,100                          41,000    1,357,100
Fannie Mae                         0.17%       1,500    112,590                           2,200      165,132     3,700      277,722
Fifth Third Bancorp                0.15%       2,000    118,200                           2,000      118,200     4,000      236,400
First Niagara Financial
  Group, Inc.                      0.78%                            84,000   1,252,440                          84,000    1,252,440
FleetBoston Financial Corp.        0.18%       4,100    178,965                           2,400      104,760     6,500      283,725
Franklin Resources, Inc.           0.04%       1,200     62,472                                                  1,200       62,472
Freddie Mac                        0.15%       1,600     93,312                           2,500      145,800     4,100      239,112
Goldman Sachs Group,
  Inc. (The)                       0.17%       1,500    148,095                           1,300      128,349     2,800      276,444
Hartford Financial
  Services Group, Inc. (The)       0.04%       1,000     59,030                                                  1,000       59,030
HSBC Holdings plc, ADR             0.11%       1,337    105,382                             963       75,904     2,300      181,286
J. P. Morgan Chase & Co.           0.28%       6,200    227,726                           6,000      220,380    12,200      448,106
John Hancock Financial
  Services, Inc.                   0.06%       2,500     93,750                                                  2,500       93,750
Lehman Brothers Holdings Inc.      0.05%       1,100     84,942                                                  1,100       84,942
Marsh & McLennan Companies,
  Inc.                             0.20%       2,600    124,514                           4,000      191,560     6,600      316,074
MBNA Corp.                         0.08%       2,100     52,185                           3,000       74,550     5,100      126,735
Mellon Financial Corp.             0.09%       2,500     80,275                           1,800       57,798     4,300      138,073
Merrill Lynch & Co., Inc.          0.21%       3,700    217,005                           2,000      117,300     5,700      334,305
MetLife, Inc.                      0.13%       3,500    117,845                           2,700       90,909     6,200      208,754
Morgan Stanley                     0.22%       2,500    144,675                           3,500      202,545     6,000      347,220
National City Corp.                0.10%       2,500     84,850                           2,200       74,668     4,700      159,518
National Financial Partners
  Corp.                            0.69%                            40,500   1,115,775                          40,500    1,115,775
Northern Trust Corp.               0.03%       1,000     46,420                                                  1,000       46,420
Platinum Underwriters
  Holdings, Ltd.                   1.35%                            72,600   2,178,000                          72,600    2,178,000
PNC Financial Services Group       0.04%                                                  1,100       60,203     1,100       60,203
Prudential Financial, Inc.         0.06%                                                  2,500      104,425     2,500      104,425
Scottish Re Group Ltd.             0.30%                            22,900     475,862                          22,900      475,862
St. Paul Companies, Inc.
  (The)                            0.02%       1,000     39,650                                                  1,000       39,650
State Street Corp.                 0.03%                                                  1,000       52,080     1,000       52,080
SunTrust Banks, Inc.               0.05%                                                  1,100       78,650     1,100       78,650
The First Marblehead Corp. *       0.17%                            12,600     275,688                          12,600      275,688
Travelers Property Casualty
  Corp., Class A                   0.02%         712     11,947                             738       12,383     1,450       24,330
Travelers Property Casualty
  Corp., Class B                   0.03%       1,464     24,844                           1,517       25,743     2,981       50,587
U.S. Bancorp                       0.19%       6,201    184,666                           4,200      125,076    10,401      309,742
UnumProvident Corp.                0.01%       1,100     17,347                                                  1,100       17,347
Wachovia Corp.                     0.19%       3,000    139,770                           3,600      167,724     6,600      307,494
Washington Mutual, Inc.            0.15%       2,800    112,336                           3,150      126,378     5,950      238,714
Wells Fargo & Co.                  0.37%       5,400    318,006                           4,800      282,672    10,200      600,678
                                                     ----------            ------------           ----------           -------------
                                                      5,118,824              9,466,301             4,965,784             19,550,909



                                      -21-



HEALTHCARE -                      12.52%
Abbott Laboratories                0.20%       3,000    139,800                           4,000      186,400     7,000      326,200
Allergan, Inc.                     0.05%       1,000     76,810                                                  1,000       76,810
Amgen Inc. *                       0.30%       4,300    265,740                           3,500      216,300     7,800      482,040
Baxter International Inc.          0.10%       2,800     85,456                           2,500       76,300     5,300      161,756
Becton, Dickinson & Co.            0.03%       1,200     49,368                                                  1,200       49,368
Boston Scientific Corp. *          0.11%       2,000     73,520                           3,000      110,280     5,000      183,800
Bristol-Myers Squibb Co.           0.19%       6,400    183,040                           4,500      128,700    10,900      311,740
Cardinal Health, Inc.              0.11%       1,950    119,262                           1,000       61,160     2,950      180,422
Cooper Companies, Inc              1.76%                            60,000   2,827,800                          60,000    2,827,800
Edwards Lifesciences               1.68%                            89,900   2,704,192                          89,900    2,704,192
Eli Lilly & Co.                    0.25%       2,800    196,924                           3,000      210,990     5,800      407,914
Guidant Corp.                      0.05%       1,400     84,280                                                  1,400       84,280
HCA Inc.                           0.09%       1,500     64,440                           2,000       85,920     3,500      150,360
HEALTHSOUTH Corp. *                0.01%       1,800      8,244                           2,500       11,450     4,300       19,694
IDEXX Laboratories, Inc.*          1.05%                            36,400   1,684,592                          36,400    1,684,592
Integra Lifesciences Holdings*     1.41%                            79,500   2,276,085                          79,500    2,276,085
Johnson & Johnson                  0.48%       7,500    387,450                           7,500      387,450    15,000      774,900
McKesson Corp.                     0.05%       1,300     41,808                           1,000       32,160     2,300       73,968
Medco Health Solutions, Inc. *     0.04%         964     32,766                             723       24,575     1,687       57,341
Medtronic, Inc.                    0.25%       4,000    194,440                           4,300      209,023     8,300      403,463
Merck & Co. Inc.                   0.33%       5,500    254,100                           6,000      277,200    11,500      531,300
Neurocrine Biosciences, Inc. *     1.07%                            31,700   1,728,918                          31,700    1,728,918
NPS Pharmaceuticals, Inc.*         1.53%                            80,000   2,459,200                          80,000    2,459,200
Pfizer Inc.                        0.89%      19,860    701,654                          20,500      724,265    40,360    1,425,919
Schering-Plough Corp.              0.07%       4,200     73,038                           2,500       43,475     6,700      116,513
Tenet Heathcare Corp. *            0.02%       2,250     36,113                                                  2,250       36,113
UnitedHealth Group Inc.            0.18%       2,000    116,360                           3,000      174,540     5,000      290,900
Wyeth                              0.20%       4,200    178,290                           3,300      140,085     7,500      318,375
                                                                           ------------           ----------           -------------
                                                      3,362,903             13,680,787             3,100,273             20,143,963

INDUSTRIALS -                     12.57%
3M Co.                             0.23%       2,400    204,072                           2,000      170,060     4,400      374,132
Automatic Data Processing, Inc.    0.12%       2,900    114,869                           2,000       79,220     4,900      194,089
Boeing Co. (The)                   0.15%       2,600    109,564                           3,000      126,420     5,600      235,984
Caterpillar Inc.                   0.15%       1,600    132,832                           1,300      107,926     2,900      240,758
Cendant Corp. *                    0.08%       3,300     73,491                           2,700       60,129     6,000      133,620
Central Freight Lines, Inc.*       0.04%                             3,300      58,575                           3,300       58,575
Compass Minerals
  International, Inc.*             0.47%                            52,700     752,556                          52,700      752,556
Concord EFS, Inc. *                0.05%       2,500     37,100                           2,500       37,100     5,000       74,200
CSX Corp.                          0.02%       1,000     35,940                                                  1,000       35,940
DSP Group, Inc.*                   2.10%                           135,600   3,377,796                         135,600    3,377,796
EDO Corp.                          0.87%                            56,500   1,392,725                          56,500    1,392,725
Emerson Electric Co.               0.14%       2,000    129,500                           1,500       97,125     3,500      226,625



                                      -22-


FedEx Corp.                        0.08%       1,000     67,500                           1,000       67,500     2,000      135,000
General Dynamics Corp.             0.03%         600     54,234                                                    600       54,234
General Electric Co.               1.06%      26,200    811,676                          29,000      898,420    55,200    1,710,096
Heartland Express, Inc.            0.94%                            62,337   1,507,932                          62,337    1,507,932
Honeywell International Inc.       0.10%       2,000     66,860                           2,800       93,604     4,800      160,464
Illinois Tool Works Inc.           0.13%       1,400    117,474                           1,000       83,910     2,400      201,384
IMS Health Inc.                    0.02%       1,400     34,804                                                  1,400       34,804
Lockheed Martin Corp.              0.13%       2,500    128,500                           1,500       77,100     4,000      205,600
Masco Corp.                        0.07%       2,500     68,525                           1,700       46,597     4,200      115,122
Overnight Corp.*                   0.08%                             5,600     127,400                           5,600      127,400
Paychex, Inc.                      0.10%       1,700     63,240                           2,500       93,000     4,200      156,240
Quanta Services, Inc.*             0.32%                            70,000     511,000                          70,000      511,000
Raytheon Co.                       0.03%       1,600     48,064                                                  1,600       48,064
Shuffle Master, Inc.*              1.58%                            73,400   2,541,108                          73,400    2,541,108
Southwest Airlines Co.             0.06%       3,750     60,525                           2,700       43,578     6,450      104,103
Swift Transportation Co., Inc.*    0.88%                            67,100   1,410,442                          67,100    1,410,442
Transocean Inc. *                  0.04%                                                  2,500       60,025     2,500       60,025
Tyco International Ltd.            0.22%       6,397    169,521                           7,000      185,500    13,397      355,021
Union Pacific Corp.                0.09%       1,000     69,480                           1,000       69,480     2,000      138,960
United Parcel Service, Inc.,
  Class B                          0.28%       2,500    186,375                           3,500      260,925     6,000      447,300
United Technologies Corp.          0.16%         100     94,770                           1,700      161,109     1,800      255,879
Universal Technical Institute
  Inc.*                            0.15%                             8,200     246,000                           8,200      246,000
USF Corp.                          1.54%                            72,600   2,482,194                          72,600    2,482,194
Waste Management, Inc.             0.08%       2,500     74,000                           1,700       50,320     4,200      124,320
                                                     ----------            ------------           ----------           -------------
                                                      2,952,916             14,407,728             2,869,048             20,229,692

INFORMATION TECHNOLOGY -          21.81%
Adobe Systems Inc.                 0.03%       1,100     43,230                                                  1,100       43,230
Agere Systems Inc.,
  Class A *                        0.00%         125        381                             115          351       240          732
Agere Systems Inc.,
  Class B *                        0.01%       3,068      8,897                           2,830        8,207     5,898       17,104
Agilent Technologies, Inc.         0.06%       1,500     43,860                           1,800       52,632     3,300       96,492
Altera Corp. *                     0.05%       1,900     43,130                           1,500       34,050     3,400       77,180
Analog Devices, Inc.               0.08%       1,700     77,605                           1,000       45,650     2,700      123,255
Apple Computer, Inc. *             0.02%       1,500     32,055                                                  1,500       32,055
Applied Films Corp                 1.27%                            62,000   2,047,240                          62,000    2,047,240
Applied Materials, Inc. *          0.11%       4,900    110,005                           2,900       65,105     7,800      175,110
Avocent Corporation                1.60%                            70,500   2,574,660                          70,500    2,574,660
Caci International Inc.
  Class A                          1.63%                            54,100   2,630,342                          54,100    2,630,342
Callidus Software*                 0.04%                             3,300      58,377                           3,300       58,377
Cisco Systems, Inc. *              0.55%      19,500    473,655                          16,900      410,501    36,400      884,156
Computer Associates
  International, Inc.              0.05%       2,700     73,818                                                  2,700       73,818
Corning Inc. *                     0.02%                                                  3,000       31,290     3,000       31,290
Dell Inc. *                        0.24%       4,700    159,612                           6,500      220,740    11,200      380,352



                                      -23-


Electronic Arts Inc. *             0.06%       2,000     95,560                                                  2,000       95,560
Electronic Data Systems
  Corp.                            0.05%       2,500     61,350                           1,000       24,540     3,500       85,890
EMC Corp. *                        2.95%       4,500     58,140    355,830   4,597,324    7,000       90,440   367,330    4,745,904
Enterasys Networks, Inc.*          1.31%                           562,100   2,107,875                         562,100    2,107,875
Equinix, Inc.*                     0.29%                            16,500     465,300                          16,500      465,300
Fairchild Semiconductor
  International, Inc.*             3.13%                           201,600   5,033,952                         201,600    5,033,952
First Data Corp.                   0.13%                                                  5,000      205,450     5,000      205,450
Harris Interactive Inc.*           0.79%                           152,200   1,263,260                         152,200    1,263,260
Hewlett-Packard Co.                0.23%       8,100    186,057                           7,800      179,166    15,900      365,223
Intel Corp.                        0.74%      17,600    566,720                          19,500      627,900    37,100    1,194,620
International Business
  Machines Corp.                   0.63%       5,500    509,740                           5,400      500,472    10,900    1,010,212
ITT Educational Services,
  Inc.*                            1.20%                            41,200   1,935,164                          41,200    1,935,164
Linear Technology Corp.            0.07%       1,500     63,105                           1,000       42,070     2,500      105,175
LSI Logic Corp. *                  0.01%       1,500     13,305                                                  1,500       13,305
Maxim Integrated Products,
  Inc.                             0.07%       1,300     64,740                           1,000       49,800     2,300      114,540
Micron Technology, Inc. *          0.04%       2,600     35,022                           2,500       33,675     5,100       68,697
Microsoft Corp.                    1.00%      28,100    773,874                          30,200      831,708    58,300    1,605,582
Motorola, Inc.                     0.12%       7,100     99,897                           6,600       92,862    13,700      192,759
NVIDA Corp. *                      0.01%       1,000     23,250                                                  1,000       23,250
Oracle Corp. *                     0.25%      17,800    234,960                          12,300      162,360    30,100      397,320
QUALCOMM Inc.                      0.13%       1,500     80,895                           2,500      134,825     4,000      215,720
Sanmina-SCI Corp. *                0.02%                                                  2,500       31,525     2,500       31,525
Siebel Systems, Inc. *             0.02%                                                  2,500       34,675     2,500       34,675
Skyworks Solutions, Inc.*          0.97%                           179,100   1,558,170                         179,100    1,558,170
Solectron Corp. *                  0.02%       3,700     21,867                           3,000       17,730     6,700       39,597
Sun Microsystems, Inc. *           0.05%      10,000     44,900                           7,500       33,675    17,500       78,575
SunGard Data Systems, Inc. *       0.04%       2,500     69,275                                                  2,500       69,275
Texas Instruments Inc.             0.19%       5,400    158,652                           4,900      143,962    10,300      302,614
Yahoo! Inc. *                      0.12%       2,500    112,925                           1,900       85,823     4,400      198,748
Zoran Corp.*                       1.42%                           131,750   2,291,133                         131,750    2,291,133
                                                     ----------            ------------           ----------           -------------
                                                      4,340,482             26,562,796             4,191,184             35,094,462

MATERIALS -                        7.86%
Air Products & Chemicals,
  Inc.                             0.03%                                                  1,000       52,830     1,000       52,830
Alcoa Inc.                         0.17%       4,200    159,600                           3,100      117,800     7,300      277,400
Dow Chemical Co. (The)             0.14%       2,700    112,239                           2,700      112,239     5,400      224,478
E. I. du Pont de Nemours & Co.     0.16%       3,300    151,437                           2,200      100,958     5,500      252,395
General Cable Corp.*               0.63%                           124,200   1,012,230                         124,200    1,012,230
Georgia-Pacific Corp.              0.04%       1,000     30,670                           1,000       30,670     2,000       61,340
International Paper Co.            0.12%       2,500    107,775                           2,000       86,220     4,500      193,995
Joy Global Inc.                    1.85%                           114,100   2,983,715                         114,100    2,983,715
Packaging Corp of America          1.76%                           129,600   2,833,056                         129,600    2,833,056
Peabody Energy Corp.               1.74%                            67,000   2,794,570                          67,000    2,794,570




                                      -24-


Praxair, Inc.                      0.07%                                                  3,000      114,600     3,000      114,600
Rohm & Haas Co.                    0.03%       1,000     42,710                                                  1,000       42,710
Steel Dynamics, Inc.*              1.08%                            74,300   1,745,307                          74,300    1,745,307
Weyerhaeuser Co.                   0.04%                                                  1,000       64,000     1,000       64,000
                                                     ----------            ------------           ----------           -------------
                                                        604,431             11,368,878               679,317             12,652,626

TELECOMMUNICATION SERVICES -       1.30%
ALLTEL Corp                        0.04%       1,500     69,870                                                  1,500       69,870
AT&T Corp.                         0.06%       2,260     45,878                           2,400       48,720     4,660       94,598
AT&T Wireless Services Inc. *      0.06%       8,534     68,187                           4,522       36,131    13,056      104,318
BellSouth Corp.                    0.22%       6,000    169,800                           6,500      183,950    12,500      353,750
Journal Communications, Inc.       0.14%                            12,000     222,360                          12,000      222,360
Lucent Technologies Inc. *         0.04%      11,600     32,944                          10,700       30,388    22,300       63,332
Nextel Communications, Inc.,
  Class A *                        0.04%       2,500     70,150                                                  2,500       70,150
SBC Communications Inc.            0.18%       8,200    213,774                           2,500       70,150    10,700      283,924
Sprint Corp. (FON Group)           0.17%       4,000     65,680                           7,900      205,953    11,900      271,633
Sprint Corp. (PCS Group) *         0.04%       1,800     10,116                           3,000       49,260     4,800       59,376
Verizon Communications Inc.        0.31%       6,200    217,496                           7,900      277,132    14,100      494,628
                                                                           ------------           ----------           -------------
                                                        963,895                222,360               901,684              2,087,939

UTILITIES -                        0.66%
American Electric Power Co.,
  Inc.                             0.05%       1,500     45,765                           1,200       36,612     2,700       82,377
Dominion Resources, Inc.           0.08%       1,100     70,213                           1,000       63,830     2,100      134,043
Duke Energy Corp.                  0.07%       2,500     51,125                           2,800       57,260     5,300      108,385
Edison International *             0.05%       1,500     32,895                           2,500       54,825     4,000       87,720
Exelon Corp.                       0.06%       1,500     99,540                                                  1,500       99,540
FirstEnergy Corp.                  0.05%                                                  2,500       88,000     2,500       88,000
FPL Group, Inc.                    0.04%       1,000     65,420                                                  1,000       65,420
Progress Energy, Inc.              0.03%       1,000     45,260                                                  1,000       45,260
Public Service Enterprises
  Group Inc,                       0.03%       1,000     43,800                                                  1,000       43,800
Scottish Power plc, ADR            0.07%                                                  4,000      108,720     4,000      108,720
Southern Co. (The)                 0.05%                                                  2,400       72,600     2,400       72,600
TXU Corp.                          0.03%       1,200     28,464                           1,000       23,720     2,200       52,184
Xcel Energy, Inc.                  0.04%       1,600     27,168                           2,500       42,450     4,100       69,618
                                                     ----------            ------------           ----------           ------------
                                                        509,650                      0               548,017              1,057,667

TOTAL EQUITY SECURITIES           95.21%             25,929,314            100,826,318            26,435,672            153,191,304
                                                     ----------            ------------           ----------           ------------

SHORT-TERM INVESTMENTS -          21.34%
   REPURCHASE AGREEMENTS -        21.34%
Bear, Stearns & Co. Inc.           0.09%     138,234    138,234                                                138,234      138,234
(Agreement dated 12/31/03 to
be repurchased at $138,241),
0.85%,  01/02/04



                                      -25-



Bear, Stearns & Co. Inc.           0.27%     438,900    438,900                                                438,900      438,900
(Agreement dated 12/31/03 to
be repurchased at $438,926),
1.06%**, 01/02/04 ***

Bear, Stearns & Co. Inc.           0.00%       2,278      2,278                                                  2,278        2,278
(Agreement dated 12/31/03 to
be repurchased at $2,278),
0.94%**, 01/02/04 ***

Bear, Stearns & Co. Inc.           4.89%                         7,867,525   7,867,525                       7,867,525    7,867,525
(Agreement dated 12/31/03 to
be repurchased at $7,867,897)
0.85%, 01/02/04

Bear, Stearns & Co. Inc.          14.84%                        23,869,214  23,869,214                      23,869,214   23,869,214
(Agreement dated 12/31/03 to
be repurchased at $23,870,620)
1.06%**, 01/02/04***

Bear, Stearns & Co. Inc.           0.86%                         1,380,273   1,380,273                       1,380,273    1,380,273
(Agreement dated 12/31/03 to
be repurchased at $1,380,345)
0.94%**, 01/02/04***

Bear, Stearns & Co. Inc.           0.09%                                                139,977      139,977   139,977      139,977
(Agreement dated 12/31/03 to
be repurchased at $139,984),
0.85%,  01/02/04

Bear, Stearns & Co. Inc.           0.26%                                                425,588      425,588   425,588      425,588
(Agreement dated 12/31/03 to
be repurchased at $425,613),
1.06%**,  01/02/04 ***

Bear, Stearns & Co. Inc.           0.04%                                                 65,644       65,644   65,644       65,644
(Agreement dated 12/31/03 to
be repurchased at $65,647),
0.94%**,  01/02/04 ***
                                                     ----------            ------------          -----------           -----------

TOTAL SHORT-TERM INVESTMENTS      21.34%                579,412             33,117,012               631,209            34,327,633


                                                     ----------            ------------          -----------           -----------
TOTAL INVESTMENTS AT MARKET      116.55%             26,508,726            133,943,330            27,066,881           187,518,937
                                                     ----------            ------------          -----------           -----------
TOTAL INVESTMENTS AT COST                            29,716,897            108,743,027            24,952,427           163,412,351
                                                     ----------            ------------          -----------           -----------

@      No adjustments are shown to the unaudited pro forma combined portfolio of
       investments due to the fact that upon consummation of the merger,
       securities would need to be sold in order for Acquiring Fund to comply
       with its prospectus restrictions. The foregoing sentence shall not
       restrict in any way the ability of the investment adviser of any of the
       funds from buying or selling securities in the normal course of such
       fund's business and operations.

*     Non-income producing securities

**   Stated interest rate, before rebate earned by borrower of securities on loan

*** Represents investment purchased with cash collateral received for securities
on loan.

ADR  American Depositary Receipt





                                      -26-