Managed asset or wrap programs are striking a chord with Canadian mutual fund investors, according to Franklin Templeton Investments Corp. In 2004 alone, fund wraps grew in assets by 28% while stand-alone funds only grew 8%.

Franklin Templeton says its Quotential wrap program, with only three years under its belt, has surpassed $3.5 billion in assets.

“The numbers prove it, Canadians like a diversified investment solution bundled into an all-in-one package like the Quotential Program. Since January of this year, the program has attracted more than $1.2 billion in sales alone,” said Don Reed, president and CEO of Franklin Templeton Investments Corp, in a news release.

“The reason for its popularity is simple. Instead of facing the prospect of tracking individual fund performance and actively rebalancing asset mixes to meet risk tolerance, the Quotential Program bundles all of these activities together for investors under one roof, providing a meaningful solution to investing and managing a highly diversified portfolio.”

Between 2002 and 2004, the industry has witnessed the launch of 47 different wrap programs, offering more than 100 portfolios.

“In the past three years, Quotential has grown from four to seven portfolios, with Balanced Growth, Diversified Income and Balanced Income being the most popular,” said Reed.

“This reflects the overall trend in the Canadian investment environment: a focus on both balanced and income solutions, regardless of the investment vehicle.”