Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 42

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 42
---
countries. Emerging market debt securities generally are rated in the lower rating categories of recognized credit rating agencies or
are unrated and considered to be of comparable quality to lower rated debt securities. A non-U.S. issuer of debt or the non-U.S. governmental
authorities that control the repayment of the debt may be unable or unwilling to repay principal or interest when due, and the Fund may
have limited resources in the event of a default. Some of these risks do not apply to issuers in large, more developed countries. These
risks are more pronounced in investments in issuers in emerging markets or if the Fund invests significantly in one country.

| 29 |

The Fund will not invest directly in debt securities
rated below investment grade (i.e., securities rated lower than Baa by Moody’s Investors Service, Inc. (“Moody’s”)
or lower than BBB by Standard & Poor’s Rating Services, a division of The McGraw-Hill Companies, Inc. (“S&P”),
or their equivalent as determined by the Investment Adviser. These securities are commonly referred to as “junk bonds.” The
foregoing credit quality policy applies only at the time a security is purchased, and the Fund is not required to dispose of securities
already owned by the Fund in the event of a change in assessment of credit quality or the removal of a rating.

Convertible Securities

The Fund may invest in convertible securities and
in investment companies holding such instruments. Convertible securities include fixed income securities that may be exchanged or converted
into a predetermined number of shares of the issuer’s underlying common stock at the option of the holder during a specified period.
Convertible securities may take the form of convertible preferred stock, convertible bonds or debentures, units consisting of “usable”
bonds and warrants or a combination of the features of several of these securities. The investment characteristics of each convertible
security vary widely, which allows convertible securities to be employed for a variety of investment strategies.

The Fund will exchange or convert convertible securities
into shares of underlying common stock when, in the opinion of the Investment Adviser, the investment characteristics of the underlying
common shares will assist the Fund in achieving its investment objective. The Fund may also elect to hold or trade convertible securities.
In selecting convertible securities, the Investment Adviser evaluates the investment characteristics of the convertible security as a
fixed income instrument, and the investment potential of the underlying equity security for capital appreciation. In evaluating these
matters with respect to a particular convertible security, the Investment Adviser