Singapore's Temasek increases exposure to energy, commodities

SINGAPORE, July 5 Thu Jul 5, 2012 2:39am EDT

SINGAPORE, July 5 (Reuters) - Singapore state investor Temasek Holdings, which posted a profit decline in the last financial year, said it will continue to look for potential investments in energy and commodities after doubling its exposure to the sector.

Sovereign investors, hurt by investments in Western banks during the 2008 financial crisis, have moved away from financial services into sectors such as commodities and infrastructure.

Earlier this year, the Government of Singapore Investment Corp, Temasek's sister fund and one of the world's biggest sovereign wealth funds, bought a 5 percent stake worth around $500 million in commodities trader Bunge Ltd.

"We will continue to look for opportunities in energy and resources," Chia Song Hwee, Temasek's head of strategy, told a media briefing on Thursday.

Temasek's latest annual report released on Thursday showed that resources and energy accounted for 6 percent of its portfolio as of the end of March, up from 3 percent at the end of the previous financial year.

In the 12 months ended March, Temasek invested S$2 billion ($1.58 billion) in U.S. shale company FTS International and S$1.3 billion in fertiliser firm Mosaic Co.

This month, corporate filings showed the Singapore investor had built up a 5.5 percent stake in Canada's Ivanhoe Mines , increasing its bet on resource companies.

Other recent resources deals by Temasek include participation in a $468 million investment to help fund U.S.-based Cheniere Energy's first liquefied natural gas export plant and an unspecified stake in Venari Resources, an early-stage oil and gas exploration company active in the Gulf of Mexico.

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