Faced with continued competition from insurance companies' proprietary offerings, Franklin Templeton plans to liquidate a money market fund it offers in variable insurance products.

The Franklin Templeton Money Market Fund had AUM of $34 million at the end of September, said Franklin spokeswoman Stacey Johnston.

The liquidation of the Franklin Templeton Money Market Fund will take place on or after April 24, 2009, according to an October 17 SEC filing.

The board of trustees of the Franklin Templeton Variable Insurance Products Trust approved the liquidation last month, citing "the continuing trend generally of insurance companies offering proprietary money market funds" as one the reasons.

"As a result, the Fund has experienced a significant decline in assets over the last decade and has limited future opportunities for asset growth," the filing stated. 

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