Cornerstone Strategic Value Fund : Annual Report (December 31, 2022)

Directors and Corporate Officers

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CORNERSTONE STRATEGIC

VALUE FUND, INC.

ANNUAL REPORT

DECEMBER 31, 2022

LETTER TO STOCKHOLDERS

January 31, 2023

Dear Fellow Stockholders:

Following is the annual report for Cornerstone Strategic Value Fund, Inc. (the "Fund") for the year ended December 31, 2022. At the end of the year, the Fund's net assets were $1,400.3 million and the Net Asset Value per share ("NAV") was $6.48. The share price closed at $7.37. After reflecting the reinvestment of monthly distributions totaling $2.16 per share, the Fund achieved a total investment return at market value of (32.21)% for the year ended December 31, 2022.

Economic and Market Summary

The U.S. economy and stock market struggled in the first three-quarters of 2022 but performed comparatively well in the fourth quarter. Over the year, the Federal Reserve ("the Fed") raised interest rates considerably, capping off the year with a 0.5% rise in December. That increase followed four 0.75% rate rises earlier in the year and pushed the rate range to a 15-year high of 4.25% - 4.50%. Fed officials indicated that interest rates would likely continue to rise through 2023, albeit more slowly than in 2022. Employers added 4.5 million jobs in 2022, the second-bestyear of job creation after 2021, when the labor market added 6.7 million jobs rebounding from Covid-19 shutdowns. Significant gains were more concentrated toward the first half of 2022, yet there was job growth every month. Hiring slowed from the first part of last year and could ease further in 2023 if the Fed continues to increase interest rates to reduce inflation and slow the economy. The U.S. economy grew at a solid 2.9% annual rate in the fourth quarter, down slightly from 3.2% in the third quarter but still more substantial than the year's first half. Inflation continued to be a challenge throughout the year, with historic highs reached in the middle of the year.

Portfolio

Most of the Fund's portfolio comprises domestic large-cap stocks, which generally performed poorly through the first three quarters of the year. The only quarter that saw positive returns for the S&P 500 index was the fourth quarter, but technology stocks continued to languish through the end of the year. 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 2022, the strength of Exxon, United Healthcare, and Merck boosted overall returns. In contrast, lagging results from Alphabet, Tesla, and Amazon weighed on portfolio performance. The Fund benefitted from positive NAV performance and some discount narrowing in the closed-endfund industry during the first half of the year, but discounts began to widen again toward the end of the year. Closed-endfunds have an elastic effect on the Fund's performance, sometimes benefitting performance and sometimes lagging depending on the broader market.

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

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LETTER TO STOCKHOLDERS (CONTINUED)

providing greater flexibility to manage their investment in the Fund. As always, stockholders can take their distributions in cash or reinvest them in shares of the Fund pursuant to the Fund's reinvestment plan. Pursuant to the Fund's distribution policy, the monthly distribution amount for the year 2023 was reset to $0.1228 per share. The Board of Directors again approved a distribution percentage of 21% of net assets for the calendar year 2023. Under this policy, the annual percentage rate was applied to the Fund's NAV at the end of October 2022 in order to determine the monthly distribution amount for 2023. The Board of Directors believes that the Fund's distribution policy maintains a stable, high rate of distribution for stockholders. As always, the monthly distributions are reviewed and approved by the Board throughout the year and are subject to change at their discretion. In addition, be sure to note the Fund's reinvestment plan which may provide additional benefit to participating stockholders, as explained further below. Please read the disclosure notes in the Fund's report for details on the Fund's distribution policy and reinvestment plan. As in previous years, stockholders receive a final determination of the total distribution attributable to income, capital gains, or return-of-capital after the end of each year. The allocation among these categories may vary greatly from year to year. In any given year, there is no guarantee that the Fund's investment returns will exceed the amount of the distributions. To the extent that the amount of distributions taken in cash exceeds the total net investment returns of the Fund, the assets of the Fund will decline. If the total net investment returns exceed the amount of cash distributions, the assets of the Fund will increase. In both cases, the Fund's individual stockholders have complete flexibility to take their distributions in cash or to reinvest in Fund shares through the Fund's reinvestment plan, and they can change this election as they desire.

Distribution Reinvestment Considerations

The Fund's distribution reinvestment plan may at times provide significant benefits to plan participants; therefore, stockholders should evaluate the advantages of reinvesting their distribution payments through the plan. Under the plan, the method for determining the number of newly issued shares received when distributions are reinvested is determined by dividing the amount of the distribution either by the Fund's last reported NAV or by a price equal to the average closing price of the Fund over the five trading days preceding the payment date of the distribution, whichever is lower. When the Fund trades at a premium to its NAV, as it has in recent history, stockholders may find that reinvestments through the plan provide potential advantages worth considering.

Outlook

There are reasons for optimism looking into the new year. The U.S. financial system is demonstrably better than during prior economic downturns. In particular, healthy balance sheets maintained by companies and households are helping to buffer the consequences of economic recession. Unemployment remains near historic lows, although Fed officials expect the unemployment rate to rise in 2023. American consumers are flush with more than $1 trillion of stimulus-derived savings and their lowest household debt relative to GDP in two decades. While inflation for goods and services will eventually moderate, wages are unlikely to fall in tandem, leaving the consumer with more buying power. Updated employment data and a wave of tech and finance-industry layoffs suggest the labor market, while still vibrant, is cooling. The World Bank sharply reduced its forecast of world economic growth in 2023 to 1.7%, which would be the third-weakestpace

in nearly three decades, behind the global recessions of 2009 and 2020. The bank said the lower forecast

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LETTER TO STOCKHOLDERS (CONCLUDED)

reflected a synchronous tightening of monetary policy and continuing disruption caused by Russia's war in Ukraine. Although the looming prospect of a global recession is on the minds of many investors, we believe the Fund is well-positioned to respond to opportunities in the stock market.

The Fund's Board of Directors, its officers, and its investment adviser appreciate your ongoing support. We are all aware that investors have placed their trust in us. We know you have a choice, and we all remain committed to continuing to provide our service to you.

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