Nov 4 (Reuters) - Investment manager Franklin Resources ( BEN )

, better known as Franklin Templeton, swung to a

fourth-quarter loss on Monday as a $389.2 million impairment

charge related to its Western Asset Management unit overshadowed

its higher management fees.

WHY IT'S IMPORTANT

The unit, which chiefly manages fixed income portfolios, has

been under investigation by the U.S. Securities and Exchange

Commission over certain trade allocations related to treasury

derivatives.

Western Asset had said in August its co-chief investment

officer, Ken Leech, received a Wells Notice from the SEC and was

on a leave of absence.

A Wells notice is issued when the SEC is planning to bring

enforcement action, but it does not necessarily mean the company

has engaged in wrongdoing.

BY THE NUMBERS

Franklin Templeton said the $389.2 million impairment charge

was tied to certain mutual fund contracts managed by Western

Asset.

However, the company's total investment management fees,

which is the largest contributor to Franklin Templeton's total

operating revenue, grew 8% to $1.77 billion in the fourth

quarter from a year ago.

It reported a loss of $84.7 million, or 19 cents per share,

for the three months ended Sept. 30, compared with a profit of

$295.5 million, or 58 cents, a year earlier.

Excluding one-time costs, Franklin Templeton's quarterly

profit fell 3% to $315.2 million.