Cornerstone Strategic Value Fund : Semi-Annual Report (June 30, 2023)

Directors and Corporate Officers

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CORNERSTONE STRATEGIC

VALUE FUND, INC.

JUNE 30, 2023

This update contains the following two documents:

• Letter to Stockholders
• Semi-AnnualReport to Stockholders

LETTER TO STOCKHOLDERS

August 4, 2023

Dear Fellow Stockholders:

Following is the semi-annual report for Cornerstone Strategic Value Fund, Inc. (the "Fund") for the six- month period ended June 30, 2023. At the end of the period, the Fund's net assets were $1,583.8 million and the Net Asset Value per share ("NAV") was $7.05. The share price closed at $8.38. After reflecting the reinvestment of monthly distributions totaling $0.74 per share, the Fund achieved a total investment return at market value of 26.74% for the period ended June 30, 2023.

Economic and Market Summary

Several economists predicted at the beginning of the year that the economy would enter a recession by the midpoint. To be sure, consumers, employees, and businesses have all experienced difficulties over the past year as a result of rising interest rates and inflation. But instead of a recession, the rate of economic expansion has remained positive, following a brief pullback last year. In the second quarter of this year, the annual growth rate of the gross domestic product was 2.4%, which was higher than the annual growth rate of 2.0% seen in the first quarter. Solid growth increases the likelihood of a gentle landing, which occurs when inflation approaches the Federal Reserve's (the "Fed") 2% target without triggering a recession. Although the Fed raised interest rates four times already in 2023, economists expect at least one and possible two more increases this year. Fed chair, Jerome Powell, stated that any additional rate increases would depend on whether inflation and economic growth declined in accordance with official projections. Despite the recent decline in the rate of job creation, the expansion of the labor market has remained a leading indicator of economic health. During the first half of this year, payrolls increased by an average of 278,000 per month,

a significant deceleration from the 400,000 average monthly gains last year. As the economy continues to recover from the pandemic, the unemployment rate has remained at or near record lows. The most recent employment and wage data contribute to the growing body of evidence indicating that the economy has not slowed as much as Fed policymakers had anticipated. Despite the fact that the health of banks was a concern in March due to a series of bank failures, the financial sector, largely shook off these events as investors calculated that the systemic risk was minimal. The information technology sector performed well during the first half of the year, although most of the gains were concentrated in a few key stocks. The energy sector performed poorly as energy prices declined through the year.

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 providing greater flexibility to manage their investment in the Fund. As always, stockholders have the option of taking their distributions in cash or reinvesting them in shares of the Fund pursuant to the Fund's reinvestment plan. 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, please 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

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LETTER TO STOCKHOLDERS (CONTINUED)

policy and reinvestment plan. As in previous years, stockholders will 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

According to economists, there is a significant possibility that the U.S. economy will slow down in the second half of this year as the Fed's interest rate increases take effect, consumers deplete their pandemic savings, and student loan repayments resume. Positive macroeconomic indicators such as unemployment, wage growth, and moderating inflation make predictions about the economy's future less certain.

Several significant pieces of legislation passed during the first two years of the Biden administration are beginning to have a positive impact on the economy. A 2021 infrastructure law enables annual spending of approximately 0.25% of GDP on highways, ports, power plants, and other infrastructure projects. Subsidies for electric vehicles, renewable energy, and semiconductors appear to have spurred a surge in private-sector investment. Expenditure on manufacturing facilities is up 70% in real terms this year compared to pre- pandemic levels, setting a record. Even if inflation declines in the short-term,it is uncertain how low it will go if the number of unfilled jobs continues to vastly exceed the number of available employees. According to some estimates, the unemployment rate would have to remain above 4.3% for some time in order to achieve the Fed's inflation objective. In order to mitigate the impact of future interest rate hikes, some analysts predicted that the Fed could shift its inflation objective from a fixed 2.0% to a range of 2.0%-2.9%.As inflation falls from historic highs and the labor market remains constrained, the likelihood of a gentle landing increases.

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LETTER TO STOCKHOLDERS (CONCLUDED)

The Fund's Board of Directors, its officers, and its investment adviser appreciate your ongoing support and are 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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