Company: CLM
Filing Date: 2025-02-21
Form Type: N-2
Source: 0001398344-25-003234
Chunk: 63

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-02-21
Form: N-2
Chunk 63
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 with its objective have failed to provide adequate income to meet the requirements of the Distribution Policy. Nevertheless,
the Board continues to believe that the Fund’s objective and strategy are complementary to the Fund’s commitment, through
the Distribution Policy, to provide regular distributions which increase liquidity and provide flexibility to individual Stockholders.
The Investment Adviser seeks to achieve net investment returns that exceed the amount of the Fund’s managed distributions, although
there is no guarantee that the Investment Adviser will be successful in this regard.

What are the features of the Distribution Policy?

The Distribution Policy provides a regular monthly
distribution to Stockholders that is adjusted through an annual resetting of the monthly distribution amount per share based on the Fund’s
net asset value on the last business day in October. The terms of the Distribution Policy have been reviewed and are approved at least
annually by the Fund’s Board and can be modified at the Board’s discretion. To the extent that distributions exceed the current
Net Earnings of the Fund, the balance of the amounts paid out will be generated from sales of portfolio securities held by the Fund and
will be distributed either as short-term or long-term capital gains or a tax-free return-of- capital. Although return of capital distributions
may not be taxable, such distributions may reduce a Stockholder’s cost basis in his or her Shares, and therefore may result in
an increase in the amount of any taxable gain on a subsequent disposition of such Shares, even if such Shares are sold at a loss to the
Stockholder’s original investment amount. To the extent these distributions are not represented by net investment income and capital
gains, they will not represent yield or investment return on the Fund’s investment portfolio. As shown on page [●] in the
table which identifies the constituent components of the Fund’s distributions under its Managed Distribution Policy for years 2020-2024,
a majority of the distributions that the Fund made to its Stockholders for 2020, 2021, 2023 and 2024 consisted of a return of its Stockholders’
capital, and not of income or gains generated from the Fund’s investment portfolio, and substantially all of the distributions
that the Fund made to its Stockholders for 2022 consisted of a return of its Stockholders’ capital, and not of income
or gains generated from the Fund’s investment portfolio. A return-of-capital distribution reduces the tax basis (but not below
zero) of an investor’s shares in the Fund. The Fund plans to maintain the Distribution Policy