Mike Davis

Following the launch of its Tyndall Australian Share Concentrated Fund to the retail market, Tyndall AM has introduced a new institutional version of the fund that may be suitable for investors on zero or low tax rates, such as charities, endowment funds and superannuation funds.

The new Tyndall Australian Share Concentrated Income Fund – LT uses the same strategy as the successful Tyndall Australian Share Concentrated Fund, however the new fund is likely to participate in off-market share buy-backs.

Historically, off-market share buy-backs have been very tax effective for investors on low tax rates. However, they have not been tax effective for investors on high-tax rates.

Mike Davis, managing director at Tyndall AM, said that the business had identified a growing need for a concentrated share strategy that participated in off-market share buy-backs that may be suitable for zero and low-tax rate investors.

“We have already seen interest from superannuation funds as well as not-for-profit organisations and charities in the new fund.

“This approach gives them access to a high conviction fund with a total return focus and an income bias that is constructed on a benchmark unaware basis. The strategy underpinning the fund has an excellent 15-year track record in delivering long-term returns. This has primarily been achieved by investing in companies that have more stable earnings streams.

“Because the fund is likely to participate in potentially attractive off-market share buy-backs it may appeal to investors who are on zero or low tax rates,” Mr Davis said.

The strategy takes advantage of the best ideas identified through Tyndall AM’s proprietary research, Comparative Value Analysis (CVA), which involves extensive fundamental analysis of all Australian companies.

The fund’s composition of stocks can vary substantially from the index which, together with the concentrated nature of the portfolio, means that over short time periods the fund can deliver significantly different return outcomes to the index. History suggests this can result in superior returns over a complete business cycle.

The fund is managed by Tyndall AM portfolio managers Jason Kim and Tim Johnston. Mr Kim has been managing the strategy underpinning the fund for 12 years and Mr Johnston has been co-managing the strategy for six years.

The post Tyndall AM launches income fund for low tax rate investors appeared first on AdviserVoice.