Bahrain wealth fund posts $650 million profit

DUBAI, Sept 23 (Reuters) - Bahrain's $14 billion sovereign wealth fund Mumtalakat said on Tuesday it posted a net profit of 245.8 million dinars ($652 million) in its first 18 months of operation and was planning to expand internationally. In a rare financial statement from a government-run investment agency, Mumtalakat said total assets to Dec. 31 stood at 5.3 billion dinars ($14.1 billion) with shareholders' funds increasing to 3 billion dinars. Mumtalakat's assets include Bahrain Aluminium (Alba), Gulf Air, Bahrain Telecommunications Co BTEL.BH (Batelco) and a 30 percent stake in the McLaren Formula 1 motor racing team. "As economies and markets slow around the world, we intend to execute upon investment strategies that will capture financial value over the long term," said Mumtalakat Chairman Sheikh Ahmed bin Mohammed al-Khalifa in a statement. The group, created in June 2006, would also look to expand regionally, Sheikh Khalifa said. Mumtalakat said it would target a variety of sectors ranging from financial services to telecommunications and food, seeking primarily minority positions in its investments. In August the fund closed a $500 million loan to help finance expansion. It said in May it was considering two acquisitions, one in the services sector in North America worth as much as $1 billion dollars, and another in Asia. Mumtalakat Chief Executive Talal al-Zain said there was still value to be captured and developed despite the market's downturn and negative prospects. "The long bull run of the global financial markets has finally come to an end, changing many of the certainties that we had accepted for so long ... For those with the right strategy, funding and insight, the tougher market conditions will offer up a wide range of investment opportunities," Zain said.