Fall Sunrise
In a few weeks I will be updating the Kepler, a portfolio populated by closed-end-funds. Which CEFs to choose for inclusion continues to be a source of frustration. This week I’ve been using ChatGPT as a source of help in selecting CEFs. Today I asked ChatGPT to create a portfolio of 30 closed-end-funds where the yield is greater than 8%. Below is a list of 30 CEFs generated by this request.
I requested 30 CEFs as there will likely be a number from this group that are not trading at a discount. One of the primary screens for selecting CEFs is to find ones that are trading at a discount, not a premium. Discount is when the price of the CEF is below the underlying value of the security.
From this group of 30 I expect to find 20 that meet the discount and yield requirements. In general, I want the Kepler to throw off a dividend yield of 10%. If the yield is much higher than 10% one is moving into a higher risk environment.
If you are unable to see the list of 30 CEFs, register as a Guest and wait for me to elevate you to the Platinum level. Registration is free as there is no longer any cost to reading the ITA blog.
Portfolio (30 CEFs — equal weights ≈ 3.33% each)
Source for the tickers & yields: StockAnalysis — “A List of Closed End Funds in the U.S.” (screener snapshot). Verify current yields before acting. StockAnalysis
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PDI — PIMCO Dynamic Income Fund — ~14.2% yield. StockAnalysis
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ADX — Adams Diversified Equity Fund — ~10.9%. StockAnalysis
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JPC — Nuveen Preferred & Income Opportunities Fund — ~9.9%. StockAnalysis
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PTY — PIMCO Corporate & Income Opportunity Fund — ~10.3%. StockAnalysis
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GOF — Guggenheim Strategic Opportunities Fund — ~15.8%. StockAnalysis
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CLM — Cornerstone Strategic Investment Fund — ~17.9%. StockAnalysis
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KYN — Kayne Anderson Energy Infrastructure Fund — ~8.3%. StockAnalysis
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GAB — The Gabelli Equity Trust — ~9.9%. StockAnalysis
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EVT — Eaton Vance Tax-Advantaged Dividend Income Fund — ~8.0%. StockAnalysis
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TY — Tri-Continental Corporation — ~11.2%. StockAnalysis
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PDO — Pimco Dynamic Income Opportunities Fund — ~11.0%. StockAnalysis
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ETV — Eaton Vance Tax-Managed Buy-Write Opportunities Fund — ~8.3%. StockAnalysis
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ISD — PGIM High Yield Bond Fund — ~8.7%. StockAnalysis
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EMD — Western Asset Emerging Markets Debt Fund — ~10.9%. StockAnalysis
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IFN — The India Fund — ~15.1%. StockAnalysis
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BME — BlackRock Health Sciences Trust — ~8.2%. StockAnalysis
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HPS — John Hancock Preferred Income Fund III — ~8.6%. StockAnalysis
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HQL — Abrdn Life Sciences Investors — ~10.8%. StockAnalysis
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KIO — KKR Income Opportunities Fund — ~12.3%. StockAnalysis
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NPFD — Nuveen Variable Rate Preferred & Income Fund — ~10.2%. StockAnalysis
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IGD — Voya Global Equity Dividend & Premium Opportunity Fund — ~10.2%. StockAnalysis
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NML — Neuberger Berman Energy Infrastructure & Income Fund — ~8.5%. StockAnalysis
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HPI — John Hancock Preferred Income Fund — ~8.6%. StockAnalysis
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ETB — Eaton Vance Tax-Managed Buy-Write Income Fund — ~8.4%. StockAnalysis
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FRA — BlackRock Floating Rate Income Strategies Fund — ~11.9%. StockAnalysis
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FINS — Angel Oak Financial Strategies Income Term Trust — ~9.95%. StockAnalysis
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MCI — Barings Corporate Investors — ~9.5%. StockAnalysis
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GBAB — Guggenheim Taxable Municipal Bond & Investment Grade Debt Trust — ~9.7%. StockAnalysis
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PCF — High Income Securities Fund — ~11.9%. StockAnalysis
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JLS — Nuveen Mortgage & Income Fund — ~9.8%. StockAnalysis
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My personal frustration with CEF analysis are the many additional factors to consider in reducing loss exposure. After I read this post, I created a similar prompt for Google’s Gemini AI. To restrict the risk of an AI hallucination, I start the prompt by requiring the analysis to follow Superforecasting best practices. The full prompt and the results are in this link, along with Gemini details responding to the requirement of a “. . .consistent history of positive Undistributed Net Investment Income (UNII) . . . .” I closed the prompt my specifying a table format. Gemini produced these results in under one minute! We are in a new information age.
https://share.google/aimode/1ghpXOzpP9N1f0ekf
All the best,
– Lee Cash
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I update the prompt above by having Gemini add a column showing the Beta or Standard Deviation of each fund against the S&P 500. Here is the link which includes the updated prompt and Gemini AI analysis:
https://share.google/aimode/0bdiWqTR3Y97vomY9
– Lee Cash
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Lee,
Thanks so much for this additional information. From these several lists I hope to extract 20 CEFs to populate the Kepler. Kepler currently holds a few of these recommendations.
Lowell
Lowell,
Thanks for your reply. It might also be interesting to see if your ChatGTP produces a similar list from an identical prompt. Here is why. Gemini reported scanning several hundred sites to collect all of the data points, my guess is ChatGTP would use a different set of sites and yield slightly different picks.
– Lee
Lowell,
Happy New Year!
Here is why I’ve been silent. Shortly after my post above, on 10/31, while exercising with my group at the gym, I fell and broke my right hip and right wrist. Now, seven weeks later, I’ve recovered from surgery, doing out-patient PT and am weaning off my quad cane. I expect to be back to normal in another 6-8 weeks. Found out the hard way over 25% of male Caucasians over 70 have undiagnosed osteoporosis.
All the best,
– Lee
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Lee,
Sorry to hear of your accident. Hope 2026 is much better. Yesterday I was thinking of you and wondered if you were OK.
Question: Did you fall and break a hip or did your hip break causing the fall?
I can sympathies as I will be 1.5 years from knee replacement in one week. I feel I can now come close to walking naturally so a hip does not seize up due to compensation.
Lowell
Lowell,
The fall was due to a bad move on my part while doing rather vigorous calisthenics with my group. Now I know why football style side hops as not wise. The outpatient PT (Jan 12) was going fine, until my wife and were hit on New Years with a nasty upper respiratory virus, fortunately not flu, RSV, or Covid-19. I should be back to normal PT later this week.
Meanwhile, with the extra “free time” I have been incorporating Superforecasting best practices into my Gemini Pro AI and using it to model the multitude of Black Swans this administration is birthing. The mass media is not reporting much of the situation in Ukraine and the chaos in the global oil markets created by the invasion of Venezuela. Following are (a) the text of the prompt automatically executed daily at 9:00 AM EST and (b) the constraints I have in place for that prompt. Things do not look very good for Putin and the Administration is not paying attention:
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CURRENT GEMINI PRO PROMPT:
Provide a daily update named ‘Signpost Watch: Ukraine War Coverage and News Distortions’ The update started with the first week of 2026 January, on January 2. This update was refined on 2026 Jan 10 as follows. It posts at 9:00 EST and specifically focuses on the following:
1. Internal Russian economic data (inflation, real interest rates, Central Bank statements) to assess if the ‘Zombie Grind’ is becoming unsustainable and increasing political and military instability for Putin.
2. Continue tracking the ‘European Fortress’ vs ‘Freeze’ indicators, especially considering global petroleum price disruptions initiated by the “Black Swan” invasion of Venezuela by the tRump administration.
3. Summarize and assess Russian petroleum refinery and transportation interruption caused by Ukraine.
4. Compare this daily analysis with systematic news distortions used by Russia and by the US administration.
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Constraints, set under the “Personal Context” option:
Use https://www.ihmc.us/ as a research and visualization source.
Use https://asc-cybernetics.org/ as a research source.
Use bullet points for long paragraphs.
Start responses with a TL;DR summary.
Use superforecasting best practices.
Use https://en.wikipedia.org/wiki/Main_Page as a research source.
Use https://pmc.ncbi.nlm.nih.gov as a research source.
Use https://scholar.google.com/ as a research source.
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Today’s TL:DR (stands for “too long; didn’t read,” an internet acronym used to introduce a brief summary of a longer text), which was followed by several pages of detailed analysis with supporting open source citations.
Signpost Watch: Ukraine War Coverage and News Distortions
Date: Monday, January 12, 2026 Time: 09:00 EST Subject: The “Zombie” Squeeze & The Shanghai Summit Signal
TL;DR Summary
Economic Decay: Russia’s “Zombie Grind” hits a metabolic wall; 16.0% interest rates and high real rates (~9%) are failing to curb war-driven inflation as the 22% VAT hike takes effect.
The G3 Shadow: The “European Fortress” is hardening its shell following the U.S. pivot to Venezuela, with Beijing inviting the EU and India to a September “G3” summit that pointedly excludes Washington.
Refinery Attrition: Ukraine’s drone campaign has paralyzed 15% of Russian primary refining capacity, forcing Moscow into a domestic “Input Famine” and extending gasoline export bans.
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I am looking forward to your assessment.
– Lee
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“Meanwhile, with the extra “free time” I have been incorporating Superforecasting best practices into my Gemini Pro AI and using it to model the multitude of Black Swans this administration is birthing.”
Lee,
Have you asked Gemini Pro to generate an asset allocation portfolio? I’ve done this with CHATGPT and I added a request to use Vanguard tickers when possible. If the Vanguard request is omitted CHATGPT will use iShares or Blackrock tickers.
Lowell
Lee,
Perhaps we can share portfolio setups including ticker symbols and the percentage to allocate to each. Maybe other readers will chime in and add their wisdom.
We can do this over in the Forum if there is a limit to comments one can add to a specific blog post.
Lowell