Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 10

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 10
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 government shutdowns, political changes or diplomatic developments, public health   
 emergencies (such as the spread of infectious diseases, pandemics and epidemics) and natural/environmental disasters can all negatively  
 impact the securities markets.                                                                                                           
 Managed Distribution Policy Risk. Under                                                                                                  
 the Fund’s Distribution Policy, the Fund makes monthly distributions to Stockholders at a rate that may include periodic distributions   
 of its net income and net capital gains (“Net Earnings”), or from return-of-capital. For any fiscal year where total                     
 cash distributions exceeded Net Earnings (the “Excess”), the Excess would decrease the Fund’s total assets and,                          
 as a result, would have the likely effect of increasing the Fund’s expense ratio. There is a risk that the total Net Earnings            
 from the Fund’s portfolio would not be great enough to offset the amount of cash distributions paid to Stockholders. If this             
 were to be the case, the Fund’s assets would be depleted, 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 have to sell a portion of its investment portfolio, including 
 securities purchased with the proceeds of the Offering, at a time when independent investment judgment might not dictate such action.    
 Furthermore, such assets used to make distributions will not be available for investment pursuant to the Fund’s investment               
 objective. The Fund adopted the Distribution Policy in 2002, and during recent years the Fund’s distributions have exceeded              
 its Net Earnings. The Fund may use the proceeds of the Offering to maintain the Distribution Policy by providing funding for future      
 distributions, which may constitute a return of capital to Stockholders and lower the tax basis in their Shares which, for the taxable   
 Stockholders, will defer any potential gains until the Shares are sold. For the taxable Stockholders, the portion of distribution        
 that constitutes ordinary income and/or capital gains is taxable to such Stockholders in the year the distribution is declared. A        
 return of capital is non-taxable to the extent of the Stockholder’s basis in the shares. The Stockholders would reduce their             
 basis (but not below zero) in the Shares by the amount of the distribution 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. Any return of capital will be separately identified when Stockholders receive their tax statements. Any      
 return of capital