The launch of Templeton Guaranteed Investment Funds answers demand for investment guarantees combined with the potential returns of equity investing

Templeton survey finds that investor awareness of segregated funds jumps dramatically as investors look for secure long-term investments.

TORONTO, Sept. 28 /CNW/ - Templeton Management Limited announced today its launch into segregated funds. "Templeton Guaranteed Investment Funds fulfil a need for Canadian investors, especially in these volatile markets," says Don Reed, President and CEO of Templeton Management Limited.

"Templeton Guaranteed Investment Funds allow investors to both benefit from the growth potential of mutual funds and enjoy the security and guarantees of an insurance product," says Reed. "They offer investors Templeton's investment management experience coupled with the financial strength of Allianz Life Insurance Company of North America, the insurer providing the investment guarantee."

The benefits offered by Templeton Guaranteed Investment Funds stack up among the best in the industry. They include a 100 per cent investment guarantee at the end of ten years or upon the death of the annuitant. As well investors have the ability to lock-in investment gains up to four times a year. "The guarantees provided under this product do not decrease with age," notes Tim Hague, Vice President, Marketing, Templeton. "The guarantees remain at the full 100%. This is an extremely important feature for investors purchasing a segregated fund." In addition, Templeton Guaranteed Investment Funds are RRSP eligible, are exempt from probate fees and provide potential creditor protection.

A recent survey conducted for Templeton by Angus Reid, finds that investor awareness of segregated funds has increased dramatically over the past six months, rising to a high of 64 per cent. The dramatic increase in awareness comes at the same time that 41 per cent of investors say that recent market volatility is changing their attitudes toward investing. When asked more specifically about their investment intentions, nearly one-half of those surveyed said they would prefer to place their money in investments with guarantee features.

"What seemed to be missing was an investment vehicle that offers the potential to bridge the gap between investor expectations of investment returns and those returns that can be achieved from most guaranteed investment products, such as GICs. This drove our decision to launch Templeton Guaranteed Investment Funds," says Reed, "Templeton Guaranteed Investment Funds are designed to be that product."

"The timing of the launch of Templeton Guaranteed Investment Funds could not have been better," notes Tom Clifford, Assistant Vice President of Allianz Life Insurance Company of North America (Allianz Life). "The combination of factors: knowledge of segregated funds; a desire for guaranteed investments; and a willingness to consider segregated funds - have all come together to present us with an unparalleled market opportunity to launch a great option for investors." Templeton Guaranteed Investment Funds are available through life insurance licensed investment advisors and insurance agents. The survey of 400 Canadian investors was conducted by The Angus Reid Group between September 11 and 18 and is considered accurate to within + or - 5 percentage points 19 times out of 20.

Allianz Life is a subsidiary of the Munich based Allianz Group, the third largest insurance group in the world with over 73,000 employees in more than fifty countries worldwide. Allianz Life operates throughout the United States and Canada and has assets of over $19 billion (Cdn.) as of June 30, 1998. Allianz Life has consistently received high ratings from independent industry analysts, such as A.M. Best, Moody's and Weiss, for its financial strength and claim-paying ability. As of August 31, 1998, Allianz Life received an A.M. Best A+ (Superior) rating.

Templeton provides global investment management, advisory and distribution services to individual, institutional and corporate clients worldwide. The company combines a value oriented, bottom-up approach with a long-term investment perspective in its global search for undervalued companies. In 1992, the Templeton organization merged with Franklin Resources, Inc. The Franklin Templeton Group manages $325 billion (Cdn.) assets. In Canada, Templeton Management Limited manages seven international funds, five Canadian funds (RSP-eligible), one closed-end fund, six segregated funds and distributes two U.S. equity funds, with total assets of $16 billion as of August 31, 1998.

0- 09/28/98

For further information: Don Reed, CFA CIC, President and CEO, Templeton Management Limited, (416) 957-6000; Tim Hague, Vice President, Marketing, Templeton Management Limited, (416) 957-6005

News release courtesy Canada NewsWire.

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