Franklin Templeton Investments Corp. today introduced two new funds to meet the growing demand among Canadians for yield.

Bissett Corporate Bond Fund is designed to provide high current income by investing primarily in investment-grade corporate bonds, debentures and short-term notes; and Franklin Templeton Managed Corporate Yield Class fund is designed to increase after-tax yield by using forward contracts to provide capital gains instead of interest income.

“Many Canadians are looking for additional income solutions,” said Don Reed, president and CEO, Franklin Templeton Investments Corp., in a news release. “Our new Corporate Bond fund is ideal for investors seeking an income stream and potentially higher yield. And our new Managed Corporate Yield Class fund is suitable for investors who want the stability of income and the tax-efficiency of capital gains.”

Franklin Templeton Managed Corporate Yield Class fund uses forward contracts to provide a return similar to its reference fund, Bissett Corporate Bond Fund.

“By entering into forward contracts that are tied to the performance of the Corporate Bond fund, the new Managed Corporate Yield Class fund is positioned to increase after-tax yield,” said Reed.

Guy Le Blanc, lead manager of Bissett Bond Fund, and Heather McOuatt, co-manager of Bissett Canadian Short Term Bond Fund along with Le Blanc, will both co-manage the two new funds.

Bissett Canadian Balanced Fund now available in Corporate Class

Bissett Canadian Balanced Fund — with more than $1.1 billion in assets — is now offered in a Corporate Class version. The new Bissett Canadian Corporate Class fund offers a tax efficient option for Canadians investing outside of their registered accounts.

“Building on the success of Bissett Canadian Balanced Fund, the new Corporate Class version will benefit investors looking to diversify their portfolio without realizing an immediate tax consequence,” said Reed.

The new Bissett Canadian Corporate Class fund is part of Franklin Templeton’s Corporate Class structure, which allows investors to switch between funds and portfolios while deferring taxable events until they redeem from the structure.