New currency hedged global bond fund offers Canadians tax-efficient returns

- New Canadian Short Term Bond Yield Class and Canadian Dividend Corporate Class launched -

TORONTO, Sept. 27 /CNW/ - Franklin Templeton Investments Corp. today introduced the Templeton Global Bond Hedged Yield Class fund and the Bissett Canadian Short Term Bond Yield Class fund to meet the growing demand among Canadians for tax-efficient returns. The two new funds use a derivative strategy to provide returns in the form of capital gains instead of interest income for tax purposes.

"With interest rates near historic lows, Canadian investors are looking for ways to increase their after-tax income," said Don Reed, president and chief executive officer, Franklin Templeton Investments Corp.

Templeton Global Bond Hedged Yield Class

Templeton Global Bond Hedged Yield Class fund reduces the potential impact of exchange rate fluctuations between the Canadian and U.S. dollars by adding a USD - CAD currency overlay to the forward contracts used as part of its derivative strategy.

The fund will invest in a portfolio of Canadian equity securities and enter into forward contracts under which it will forward sell the equity securities at a future date. This will provide a return in a tax-efficient manner similar to its reference fund, the Templeton Global Bond Fund.

"This new fund will give investors exposure to strategies pioneered by our award-winning global fixed income team while reducing currency risk," said Mr. Reed.

In addition, the fund is available in a Series T version designed to provide investors with tax-efficient monthly cash flows through Return of Capital (ROC).

Michael Hasenstab, who manages the five-star Morningstar rated Templeton Global Bond Fund, will also manage Templeton Global Bond Hedged Yield Class.

Bissett Canadian Short Term Bond Yield Class

The new Bissett Canadian Short Term Bond Yield Class fund will invest in a portfolio of Canadian equity securities and enter into forward contracts under which it will forward sell the equity securities at a future date. This will provide a return in a tax-efficient manner similar to its reference fund, the Bissett Short Term Bond Fund.

Heather McOuatt and Darcy Briggs, who co-manage Bissett Canadian Short Term Bond Fund, will co-manage Bissett Canadian Short Term Bond Yield Class.

Bissett Canadian Dividend Fund available in Corporate Class

The Bissett Canadian Dividend Fund, which invests primarily in dividend paying or income producing Canadian securities, is now available in a tax-deferred Corporate Class structure. In addition, investors may purchase Series T units of the fund, providing tax-efficient monthly cash flows through Return of Capital (ROC).

Juliette John, who is the lead manager of the Bissett Canadian Dividend Fund, will also manage the Corporate Class version.

The new funds are part of Franklin Templeton's Corporate Class structure. The structure allows investors to switch between funds and portfolios while deferring taxable events until they redeem.

Franklin Templeton Investments

Franklin Templeton Investments Corp. is a wholly owned subsidiary of Franklin Resources, Inc. (NYSE: BEN), a global investment organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions managed by its Franklin, Templeton, Bissett, Mutual Series, Fiduciary Trust and Darby investment teams. The San Mateo, CA-based company has more than 60 years of investment experience and more than US$600 billion (C$639 billion) in assets under management as of August 31, 2010.

Franklin Templeton Investments Corp. has more than 600 employees providing services to more than one million unitholder accounts and more than 200 pension funds, foundations and other institutional investors. Additional information on Franklin Templeton Investments Corp. can be found at www.franklintempleton.ca.

For further information: Media contact: Sarah Kingdon, Franklin Templeton Investments Corp., 416.957.6191