Tyndall/Suncorp Investment Management's Tyndall Australian Share Income Fund (TASIF), which was launched in November last year, has been given a 'Recommended' rating by Lonsec.

The Fund seeks to provide investors with a tax-effective income stream of 2% pa more than the dividend yield of the S&P/ASX200 Accumulation Index (grossed up for franking credits) over rolling five-year periods. It also aims to provide long-term capital growth by investing in under-valued companies.

In its report, Lonsec described TASIF as “a strong offering in the Australian equity income space."

“Tyndall's bottom-up driven, intrinsic value, high conviction approach to investing has been consistently applied by the fund manager for over nine years. Lonsec believes that a key differentiating feature of Tyndall's approach is the manager's pragmatic approach to value investing. Rather than investing in just deep value stocks the manager recognises that stock opportunities exist at various stages of the stock cycle."

“Lonsec considers Tyndall's investment process and portfolio construction to be robust. The manager's bottom-up investment approach is supported by rigorous company analysis and stock modelling. The core of the investment process has been adhered to consistently over the years,” it said.

Lonsec added that it believes that "a key strength of this Fund is the level of depth and experience within Tyndall's Australian equities investment team."

“A competitive advantage of the team is the fact that the portfolio management group has managed money throughout different market cycles, which Lonsec believes to be important given the increased volatility in domestic markets.”

Mr Craig Hobart, head of retail at Tyndall/Suncorp Investment Management, said that the Fund is particularly suited to the current market environment.

“It is designed to provide a tax-effective yield for investors, with the additional attraction of capital growth, and is a good option for those who would like immediate income while at the same time maintaining their capital for the future, such as retirees.

“TASIF uses Tyndall’s proprietary research process, Comparative Value Analysis, to identify stocks representing good value and help deliver consistent tax-effective income over the long term,” he said.