Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 39

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 39
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 are established without the participation of the issuer. Unsponsored
receipts may involve higher expenses, they may not pass-through voting or other stockholder rights, and they may be less liquid. Less
information is normally available on unsponsored receipts.

Dividends paid on foreign securities may not qualify
for the reduced federal income tax rates applicable to qualified dividends under the Code. As a result, there can be no assurance as
to what portion of the Fund’s distributions attributable to foreign securities will be designated as qualified dividend income.
See “Certain Additional Material United States Federal Income Tax Considerations.”

Emerging Market Securities

The Fund may invest up to 5% of its net assets in
emerging market securities, although through its investments in ETFs, other investment companies or depository receipts that invest in
emerging market securities, up to 20% of the Fund’s assets may be invested indirectly in issuers located in emerging markets. The
risks of foreign investments described above apply to an even greater extent to investments in emerging markets. The securities markets
of emerging countries are generally smaller, less developed, less liquid, and more volatile than the securities markets of the United
States and developed foreign markets. Disclosure and regulatory standards in many respects are less stringent than in the United States
and developed foreign markets. There also may be a lower level of monitoring and regulation of securities markets in emerging market
countries and the activities of investors in such markets and enforcement of existing regulations has been extremely limited. Many emerging
countries have experienced substantial, and in some periods extremely high, rates of inflation for many years. Inflation and rapid fluctuations
in inflation rates have had and may continue to have very negative effects on the economies and securities markets of certain emerging
countries. Economies in emerging markets generally are heavily dependent upon international trade and, accordingly, have been and may
continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values, and other protectionist
measures imposed or negotiated by the countries with which they trade. The economies of these countries also have been and may continue
to be adversely affected by economic conditions in the countries in which they trade. The economies of countries with emerging markets
may also be predominantly based on only a few industries or dependent on revenues from particular commodities. In addition, custodial
services and other costs relating to investment in foreign markets may be more expensive in emerging markets than in many developed foreign
markets, which could reduce the Fund’s income from such securities.

In many cases