Cornerstone Funds Announce Continuing Monthly Distributions for 2025 and Distribution Percentage for 2026

Cornerstone Strategic Investment Fund and Cornerstone Total Return Fund announce monthly distributions for 2025 and 2026. The distribution policy provides for a resetting of the distribution amount annually based on the net asset value on the last business day of October. The distribution percentage for 2026 will remain at 21%. The actual distribution amount for 2026 may be higher or lower than the example provided.

Cornerstone Strategic Investment Fund (NYSE American: CLM) and Cornerstone Total Return Fund (NYSE American: CRF) have announced their continuing monthly distributions for the remainder of 2025 and the distribution policy for 2026. Both funds will maintain their monthly distributions through December 2025, with CLM distributing $0.1224 per share and CRF distributing $0.1168 per share. The 21% distribution percentage for 2026, as approved by their respective Boards, will be applied to the funds' net asset values (NAVs) as of October 31, 2025, to determine the monthly payouts for the following year.

The distribution amounts for 2026, based on July 31, 2025 NAVs, are estimated to be $0.1189 per share for CLM and $0.1144 per share for CRF. However, the actual amounts will be finalized by October 2025, reflecting the funds' NAVs at that time. The distributions are not tied to investment income or capital gains and may include return-of-capital, which can reduce an investor's cost basis and create a tax-advantaged income stream in the short term. The high distribution rate of 21% is primarily funded by returning investor capital rather than investment returns, which may appeal to income-focused investors but should be considered carefully.

Investors should be aware that return-of-capital distributions can gradually erode the fund's asset base if not offset by equivalent investment returns. The press release acknowledges this risk, stating that if total cash distributions exceed net earnings, the excess will decrease each fund's total assets and potentially increase expense ratios. While the high distribution rate may seem attractive, it represents a structured liquidation of capital rather than sustainable investment yields.

The distribution policy for each fund provides for the resetting of the monthly distribution amount per share annually based on the net asset value on the last business day of October. The distribution percentage for 2026 remains at 21%, which will be applied to the net asset value of each fund as of the end of October 2025 to determine the distribution amount for 2026. The actual data determining the monthly distribution amount for 2026 will not be known until the end of October 2025, but based on July 31, 2025 values, the monthly distribution amounts for 2026 would be $0.1189 per share for CLM and $0.1144 per share for CRF. Stockholders have the option to reinvest their distributions in additional shares of their fund or receive them in cash through the dividend reinvestment plan.

Investors should carefully review the terms of each fund's distribution policy and consult their tax advisors for proper tax treatment of the distributions. The funds' Boards remain convinced that their stockholders are well served by a policy of regular distributions, which increase liquidity and provide flexibility in managing their investments.

References:
[1] https://www.stocktitan.net/news/CLM/cornerstone-funds-announce-continuing-monthly-distributions-for-2025-wwccqm9jkw1l.html