Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 67

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 67
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vest in shares of the fund, in which case, it will also not be available for investment pursuant to the
fund’s investment objective. It is possible that a situation will occur where the Distribution Policy contributes to a reduction
of assets over an extended period of time such that the assets of the Fund are reduced to a point where the Fund would no longer be economically
viable. In such event, the Fund would need to take additional actions, which may include, for example, liquidation or merger, to address
the situation. While this is one of the risk factors of any managed distribution policy, including the Distribution Policy, it is important
to note that the Distribution Policy was not designed to be a mechanism for the dissolution of the Fund or a short-term liquidation policy,
and it is not the intention of the Board to allow the Fund to self-liquidate through the unsupervised effects of the Distribution Policy.
The Board monitors the Distribution Policy and the Fund’s asset levels regularly, and remains ready to modify the terms of the
Distribution Policy if, in its judgment, the Board believes it is in the best interests of the Fund and its Stockholders. The Board may
consider additional rights offerings in the future.

| 44 |

A return-of-capital distribution reduces the tax
basis of an investor’s Shares, which may make record-keeping by certain Stockholders more difficult.

The Fund discloses the characterization of its distributions
in notices to Stockholders and press releases to the public. Notwithstanding these communications, it is possible that the Distribution
Policy may create potential confusion in the marketplace as to whether the Fund’s distributions are comprised of income or return
of capital and how such characterization may influence the market price of the Fund’s Shares.

For the years 2020-2024, the Fund’s distributions
under the Distribution Policy were characterized, on an annual basis, as set forth on the table below:

<div align='center'>Cornerstone Strategic Investment Fund, Inc.

Dividends and Distributions Paid from 2020 through 2024</div>

| Years |     | Total                       
 Dividends and Distributions |             |     | Earnings 
 Amount   |             |     | Percent |       |   |     | Return-of-Capital 
 Amount            |             |     | Percent |       |   |
|:------|:----|:----------------------------|------------:|:----|:---------|------------:|:----|:--------|------:|:--|:----|