BMO Investments Inc. has announced the launch of four new mutual funds that are designed to address a growing need for income and cash flow among Canadian investors.

BMO Guardian Enhanced Equity Income Fund, Advisor Series, aims to provide reliable monthly cash flow and the potential for some capital appreciation by investing primarily in equity securities and exchange-traded funds (ETFs). It also uses covered calls to enhance equity income and reduce volatility.

BMO Guardian Target Enhanced Yield ETF Portfolio, Advisor Series, targets yield by investing in a mix of equity and fixed income ETFs. As of May 31st, the fund had 33.4% of its assets in equities, 33.2% in bonds and 33.4% in cash. Its top holdings included BMO High Yield US Corporate Bond Hedged to CAD Index ETF (TSX:ZHY), BMO Equal Weight Utilities Index ETF (TSX:ZUT) and BMO Equal Weight REITs Index ETF (TSX:ZRE).

BMO Guardian Target Yield ETF Portfolio, Advisor Series, targets yield by investing in fixed income ETFs. As of May 31st, the fund’s top holdings included BMO Short Corporate Bond Index ETF (TSX:ZCS), BMO Mid Corporate Bond Index ETF (TSX:ZCM) and BMO Long Corporate Bond Index ETF (TSX:ZLC).

BMO Guardian Laddered Corporate Bond Fund, Advisor Series, invests in a portfolio of Canadian fixed income securities, more or less equally allocated across maturities ranging from one to five years. It aims to provide a balance of yield and risk management in the face of changing interest rates.

The new funds have been available to Canadian investors through the advisor community since June 4, 2012.

The launch of the funds comes as more investors seek out investment solutions that provide stable income.

“We have introduced these new funds because there is a growing appetite among Canadians for innovative income-based products,” said Kevin Gopaul, senior vice president and chief investment officer, ETFs and Mutual Funds, BMO Asset Management Inc. “Many people are approaching or entering retirement and are looking for income and cash-flow solutions. When you combine this with the fact that low interest rates are fuelling a need for more alternative sources of income, these funds are all the more relevant for the current market environment.”