Company: CLM
Filing Date: 2025-03-04
Form Type: N-CSR
Source: 0001398344-25-004655
Chunk: 2

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-03-04
Form: N-CSR
Chunk 2
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 reductions in 2025, implying that borrowing costs may stabilize at a level higher than anticipated by investors. Since peaking most recently in 2022, the rate of inflation growth slowed substantially from prior years, although it was still positive in 2024. Inflation data toward the end of 2024 implied slowing progress in bringing price pressures into alignment with Fed targets. Reaccelerating inflation is a potential concern due to continued bullish performance of the stock market.

Portfolio

Most of the Fund’s portfolio comprises domestic large-cap stocks, which performed very well in 2024, matching the bullish gains seen in 2023 and driving the S&P 500 to new highs. Other than pullbacks in April and late summer, the stock market saw steady gains throughout the year. All stock market sectors ended the year with gains, except materials, which ended in the negative. For the second year in a row, communication services and information technology outpaced the rest of the market. The “Magnificent Seven” stocks comprised of Apple, Microsoft, Alphabet, Amazon.com, Nvidia, Tesla, and Meta Platforms, generated about half the gains in the stock market for 2024. Although the financials sector trailed the broader market in 2023, it jumped to the fourth highest-gaining sector in 2024. Our investing approach considers overall sector weighting and individual positions within each sector to balance the best potential for positive performance while taking advantage of occasional inefficiencies when prudent. This approach adds objectivity through sector discipline and reduces volatility while providing a conservative path to consistent long-term returns. In 2024, the strength of Nvidia, Apple, and Amazon boosted overall returns. In contrast, Adobe, Comcast, and Nike underperformed. The Fund benefitted from positive NAV performance and some discount widening and narrowing in the closed-end fund industry at different times throughout the year. Closed-end funds have an elastic effect on the Fund’s performance, sometimes benefiting performance and sometimes lagging depending on the broader market.

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Letter to Stockholders(continued)

Managed Distribution Policy

The Fund has maintained its policy of regular distributions to stockholders, which continues to be popular with investors. These distributions are not tied to the Fund’s investment income and capital gains and do not represent yield or investment return on the Fund’s portfolio. The policy of maintaining regular monthly distributions is designed to enhance stockholder value by increasing liquidity for individual investors and providing greater flexibility to manage their investment in the Fund. As always, stockholders can take their distributions in cash or reinvest