Jan 31 (Reuters) - Investment manager Franklin Resources ( BEN )

, better known as Franklin Templeton, beat Wall Street

estimates for first-quarter profit on Friday as a rallying

equities market boosted investment management fees.

WHY IT'S IMPORTANT

The company's Western Asset Management unit, which chiefly

manages fixed income portfolios, is under investigations by the

U.S. Securities and Exchange Commission and the Commodity

Futures Trading Commission regarding its former manager, Ken

Leech.

The San Mateo, California-based investment manager, however,

has benefited from an equities market rally, driven by optimism

over tax cuts and deregulation under the Trump administration.

Earlier this week, peer Invesco ( IVZ ) beat Wall Street

estimates for fourth-quarter profit due to higher investment

management fees.

BY THE NUMBERS

Franklin Templeton ended the quarter with $1.58 trillion in

assets under management, up 8% from a year ago.

The company's total investment management fees, which is the

largest contributor to its total operating revenue, rose 9% to

$1.8 billion in the quarter.

Excluding one-time costs, Franklin's profit was $320.5

million, or 59 cents per share, compared with analysts'

estimates of 53 cents per share, according to LSEG data.

Total net outflows widened to $50 billion, compared with

$300 million a year ago.

MARKET REACTION

The company's shares rose 2.7% to $20.7 in premarket

trading.