Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 66

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 66
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 to individual Stockholders in managing their investments. Stockholders
have the option of reinvesting all or a portion of these distributions in additional Shares through the Fund’s dividend reinvestment
plan or receiving them in cash. For more information regarding the Fund’s dividend reinvestment plan, Stockholders should carefully
read the description of the dividend reinvestment plan contained in the Fund’s Reports to Stockholders.

What are the risks of the Distribution Policy?

The Fund makes level distributions on a monthly basis
and these distributions are not tied to the Fund’s net investment income and capital gains and may not represent yield or investment
return on the Fund’s portfolio. Under the Distribution Policy, the Fund makes monthly distributions to Stockholders at a rate that
may include periodic distributions of its Net Earnings or a return of capital. As noted above, Stockholders have the option of reinvesting
all or a portion of these distributions in additional shares of the Fund through the Fund’s dividend reinvestment plan or receiving
them in cash. In any fiscal year where total cash distributions exceed Net Earnings and unrealized gain or loss for the year, such excess
will decrease the Fund’s total assets and, as a result, will have the likely effect of increasing the Fund’s expense ratio.
There is a risk that the total Net Earnings and unrealized gain or loss for years from the Fund’s portfolio would not be great
enough to fully offset the amount of cash distributions paid to Fund stockholders. If this were to be the case, the Fund’s assets
would be partially reduced by an equal amount, and there is no guarantee that the Fund would be able to replace the assets. In addition,
in order to make such distributions, the Fund may need to sell a portion of its investment portfolio at a time when independent investment
judgment might not dictate such action. Furthermore, the cash used to make distributions will not be available for investment pursuant
to the Fund’s investment objective.

Funds maintain varying degrees of cash levels pursuant
to market conditions and the judgment of the portfolio managers. In addition, portfolio managers must raise cash periodically to cover
operating expenses. For any fund, to the extent that cash is held at any given time for operating expenses or other purposes, it will
not be available for investment pursuant to that fund’s investment objective. In addition to these general cash requirements, a
fund’s distribution policy may also require that securities be sold to raise cash for those stockholders who elect to take cash
distributions rather than rein