Temasek's portfolio hits record, sees US, Europe investments

SINGAPORE, July 4 Thu Jul 4, 2013 3:00am EDT

SINGAPORE, July 4 (Reuters) - Singapore state investor Temasek Holdings Pte Ltd said it plans to step up investments in the United States and Europe and could take advantage of a restructuring in China by investing further in the world's second-biggest economy.

The city-state's second-biggest sovereign investor reported an 8.6 percent rise in its portfolio size to a record S$215 billion ($168.8 billion) in its last financial year that ended in March, helped by a rebound in Asian shares.

"We are, however, seeing increasing opportunities in the United States and Europe that are beneficiaries of the growth in other geographies, and are likely to step up our pace of investments in these markets," Temasek said in its annual review on Thursday.

It also said structural changes in China's economy will create investment opportunities in state-owned enterprises and the private sector.

Temasek - headed by Ho Ching, the wife of Singapore's Prime Minister Lee Hsien Loong - is a major global investor, holding stakes in firms such as Singapore Airlines Ltd and Standard Chartered Bank Plc.

It has also poured billions of dollars into large Chinese banks, including about $2.4 billion into the Industrial and Commercial Bank of China since 2012 alone.

Temasek, which invests mainly in Asia, said its net profit edged down to S$10.6 billion from the previous year's S$10.7 billion.

Singapore's AAA-rated wealth fund said 30 percent of its portfolio was in Singapore as of the end of March, 23 percent in China and 13 percent in Australia.

Focusing on European companies with global operations, Temasek paid $779 million for a 5 percent stake in German chemical maker Evonik Industries and $1.35 billion for an additional 5 percent stake in Spanish oil group Repsol .

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