Cornerstone Funds announces continuous monthly distributions

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NEW YORK, August 6, 2021 (GLOBE NEWSWIRE) – Cornerstone Strategic Value Fund, Inc. (NYSE American: CLM) and Cornerstone Total Return Fund, Inc. (NYSE American: CRF), (each the “Fund” or, collectively, the “Funds”), each a closed-end investment company, announced that, in accordance with the monthly distribution policy previously adopted by each Fund, each Fund declares the following distributions:

Registration Date Payment date Per share
CLM October 15, 2021 October 29, 2021 $ 0.1602
CLM November 15, 2021 November 30, 2021 $ 0.1602
CLM December 15, 2021 December 31, 2021 $ 0.1602
FRC October 15, 2021 October 29, 2021 $ 0.1537
FRC November 15, 2021 November 30, 2021 $ 0.1537
FRC December 15, 2021 December 31, 2021 $ 0.1537

The distribution policy of each Fund provides for the annual reset of the monthly distribution amount per share (“Distribution Amount”), based on the net asset value of each Fund on the last business day of October and the annualized distribution percentage. approved by the respective Board of Directors (individually the “Board”, or collectively, the “Boards”). Each Board has previously announced that the payout percentage for calendar year 2021 will remain unchanged from the previous year at 21% of each Fund’s net asset value.

Percentage of distribution for 2022

Each Board today announced that the Payout Percentage for calendar year 2022 will remain at 21%, which will be applied to the net asset value of each Fund at the end of October 2021 to determine the Payout Amount for 2022. The Payout Percentage is not a function of and unrelated to the performance of a Fund’s portfolio investments.

The actual data that will determine the amount of the monthly distribution for 2022 will not be known until the end of October 2021. However, as an example, if the net asset value and the number of shares outstanding were the same as July 31, 2021, the monthly distribution amount for 2022 would be reset from $ 0.1602 per share to $ 0.1813 per share for CLM and from $ 0.1537 per share to $ 0.1746 per share for CRF. The actual distribution amount for each Fund for 2022 may be higher or lower than those shown in the examples above.

Each Board believes that the distribution policy of each Fund maintains a stable and high distribution rate. These distributions are not linked to the investment income or capital gains of each Fund and do not represent the return or investment performance of the portfolio of each Fund. The Distribution Amount from one calendar year to the next will increase or decrease according to the evolution of the net asset value of each Fund. The terms of each distribution policy are reviewed and approved at least once a year by the Board of each Fund and may be changed at their discretion in the interest of each Fund and its shareholders.

The Board of each Fund remains convinced that its shareholders are well served by a policy of regular distributions which increases liquidity and offers flexibility to individual shareholders in managing their investment in each Fund. Shareholders have the option of reinvesting these distributions in additional shares of their Fund or of receiving them in cash. Shareholders may consider reinvesting their regular distributions through their Fund’s dividend reinvestment plan, which can sometimes provide an additional benefit to shareholders who participate in their Fund’s plan. Shareholders should carefully read the description of the dividend reinvestment plan contained in each Fund’s report to shareholders.

Under the distribution policy of each Fund, each Fund may distribute to shareholders each month a minimum fixed percentage per year of the net asset value or market price per share of its common shares or at least a minimum fixed dollar amount per year. year. In deciding to adopt this policy, the board of each Fund has sought to make regular monthly distributions throughout the year. Under each policy, distributions from each Fund will consist of either (1) earnings, (2) capital gains, or (3) return of capital, or a combination of one or more of these categories. A return of capital is the return of a portion of the shareholder’s initial investment.

In view of the current economic environment and the composition of the portfolio of each Fund, a portion of the distributions of each Fund paid during the current calendar year should consist of a return of the shareholder’s capital. Therefore, these distributions should not be confused with the performance or investment performance of the portfolio of each Fund. The final composition of the distributions for 2021 can only be determined after the end of the year and is subject to change depending on market conditions during the year and the magnitude of income and gains realized for the year. ‘year.

In any year, there can be no assurance that the return on investments of each Fund will exceed the amount of net distributions. To the extent that the amount of distributions paid to shareholders in cash exceeds the total net returns of the Fund’s investments, the assets of a Fund will decline. If the total net investment returns exceed the amount of cash distributions, the assets of a Fund will increase. Distributions designated as return of capital are not taxed like ordinary dividends and are referred to as tax-free dividends or non-taxable distributions. A return of capital distribution reduces the cost base of a shareholder’s shares in the Fund. Shareholders can expect to receive tax information for the 2021 distributions by mid-February 2022 indicating the exact composition per share of the distributions received during the calendar year. Shareholders should consult their tax advisor for the appropriate tax treatment of distributions from each Fund.

The volatility of the global economy is helping to create what Cornerstone Advisors, LLC (the “Advisor”) sees as significant opportunities through investments in closed-end funds. In addition to holding closed-end funds that invest substantially all of their assets in equity securities, the Advisor may also choose to take advantage of situations of funds that invest in fixed income securities or other categories of funds. ‘investment. Closed-end funds, with their widely diversified holdings, enhance diversification within each Fund’s portfolio.

Investing in other investment firms involves substantially the same risks as investing directly in the underlying instruments, but the total return on these investments at the investment firm level is reduced by operating costs and costs. fees of these other investment companies, including advisory fees. To the extent that each Fund invests its assets in securities of investment companies, these assets will be subject to the risks of the portfolio securities of the purchased investment company, and a shareholder of the Fund will not only bear its proportionate share of the expenses of the investment company. ‘a Fund, but also, indirectly, the expenses of the purchased investment company. There can be no assurance that the investment objective of an investment company in which a Sub-Fund invests will be achieved.

Under the Managed Distribution Policy, each Fund pays monthly distributions to shareholders at a rate which may include periodic distributions of its net income and net capital gains (“net income”), or a return of capital. If, in a fiscal year in which the total cash distributions exceeded net income (the “excess”), the excess would reduce the total assets of each Fund and, therefore, would likely have the effect of increasing the ratio of cash distributions. charges of each Fund. There is a risk that the total net income from the portfolio of each Fund will not be sufficient to offset the amount of cash distributions paid to shareholders of the Fund. If this were to happen, the assets of a Fund would be depleted and there is no guarantee that a Fund would be able to replace the assets. In addition, in order to make such distributions, a Fund may be required to sell part of its investment portfolio at a time when independent investment judgment may not dictate such action. In addition, those assets used to make distributions will not be available for investment in accordance with the investment objective of the Fund.

Cornerstone Strategic Value Fund, Inc. and Cornerstone Total Return Fund, Inc. trade on the NYSE American LLC under the symbols “CLM” and “CRF”, respectively. For more information on each Fund, please visit www.cornerstonestrategicvaluefund.com and www.cornerstonetotalreturnfund.com.

Past performance is no guarantee of future performance. An investment in a Fund is subject to certain risks, including market risk. In general, closed-end fund stocks often trade at a discount to their net asset value and, at the time of sale, may trade on the stock exchange for more or less than the original purchase price or net asset value. . A shareholder should carefully consider the investment objective, risks, costs and expenses of a Fund. Please read a Fund’s disclosure documents before investing.

In addition to historical information, this press release contains forward-looking statements, which may relate to, among other things, domestic and foreign markets, industrial and economic trends and developments and government regulations and their potential impact on a company’s investment portfolio. Funds. These statements are subject to risks and uncertainties, including the factors set forth in the disclosure documents of each Fund, filed with the United States Securities and Exchange Commission, and actual trends, developments and regulations in the future. , and their impact on the Fund could be materially different from those projected, anticipated or implied. Each Fund has no obligation to update or revise any forward-looking statements.


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