This article first appeared in The Edge Financial Daily, on May 11, 2016.

KUALA LUMPUR: The Employees Provident Fund (EPF) is looking to invest in more infrastructure assets, and is not discounting the possibility of acquiring a stake in the Damansara-Ulu Klang Expressway (Duke), which is operated by Ekovest Bhd.

“As we have mentioned [before], we are always on the lookout for infrastructure assets that provide good returns, [positive] cash flow and [operate in a] regulated framework. We have been investing significantly in the highway business over the past few years,” EPF chief executive officer (CEO) Datuk Shahril Ridza Ridzuan told a joint press conference with Taliworks Corp Bhd yesterday.

“We are always looking for new acquisitions. It may not neccessarily be Duke. There are other potential assets at this point of time,” he said.

Last month, the pension fund was reported to be one of the possible investors vying for the Duke highway assets.

According to the news report, Ekovest is seeking to monetise its highway assets either by selling as much as a 30% stake to strategic investors, or considering to list its infrastructure assets on Bursa Malaysia or the Hong Kong Stock Exchange.

“Of course, when there is a good opportunity brought to us, we are more than happy to look at it,” said its deputy CEO Datuk Mohamad Nasir Abdul Latif.

Currently, the EPF has investments in the operators of PLUS Expressways, Cheras-Kajang Highway and the New North Klang Straits Bypass Expressway.

Earlier, the EPF also announced its maiden solid waste management venture — its third partnership with Taliworks — via the acquisition of a 35% stake in SWM Environment Holdings Sdn Bhd, which provides solid waste collection services in Negeri Sembilan, Melaka and Johor.

“For a fund that focuses on generating real rate of returns, this partnership is ideal as it is in line with our diversification programme, and is able to provide the stability and predictability of income,” said Mohamad Nasir.

Meanwhile, Mohamad Nasir did not rule out the possibility of the pension fund bumping up its 1.9% stake in Taliworks as at March 25, 2016.