Temasek invests $7.8 billion in Europe last year and sees new opportunities.

Singapore's Temasek state investor sees increasing investment opportunities in Europe, as trade tensions have a positive impact on the economy and make some companies more appealing in terms of valuations. A senior executive said this on Thursday.

The global market volatility that followed U.S. president Donald Trump's "Liberation Day", on April 2, was a result of a trade war. Some investors have shifted their focus to European assets.

Temasek executives said that they see this macroeconomic climate as an opportunity to consider more companies in Europe.

In an interview, Nagi Hamiyeh said, "Sometimes, the macro helps to go into companies we like, but that weren't within our reach in terms of valuation."

"When you look at Europe there is still a huge gap between the U.S. and Europe in terms of valuation arbitrage, which makes us more confident in what we can do in Europe," added he.

Temasek announced a 11.6% increase in its net asset value year-on year, reaching a record S$434 Billion at the end its financial year.

The S$10 Billion investment made in Europe during the last financial period represents approximately 40% of the S$25 Billion investment that was planned for Europe in the next five years.

The investments include the French renewable energy company Neoen, and the Irish video game technology services firm Keywords Studios.

Hamiyeh stated that Temasek will be looking for investment opportunities with global European companies, family-run business, and strong franchises across sectors like renewable energy, consumer goods, industrials, financial services, and consumer products.

He added that Temasek is looking to expand its market reach in France, Italy and Germany, as well as Scandinavia.

(source: Reuters)