Standard & Poor's Fund Services have assigned its four-star 'NEW' rating to the Tyndall Australian Share Income Fund (TASIF).

TASIF aims to provide investors with a tax-effective income stream that exceeds the dividend yield of the S&P/ASX 200 Accumulation Index (grossed-up for franking credits) by 2% per year over rolling five-year periods. It also aims to provide long-term capital growth by investing in under-valued companies.

The Fund uses Tyndall’s proprietary intrinsic value research process, Comparative Value Analysis to identify stocks that represent good value for the portfolio, and then measures the estimated sustainable grossed-up yield of those stocks to construct the final portfolio.

In its report, S&P Fund Services said that "Tyndall's new share income fund is like a traditional imputation fund, as opposed to many of the new derivative-based share income funds, which have been created in the market recently. The difference is mainly that income is generated purely through dividend yields and franking credits of stocks, as is the case for this fund. In other styles, income can be generated using derivative strategies in the portfolio. The team running the portfolio is stable and very experienced. Investors should be aware that this is an equity fund, and should expect equity-like returns and volatility."