Building resilient income through tangible assets

Artificial intelligence (AI) is transforming the world, but it cannot run without power, transport and infrastructure. Behind every data centre, every AI model and every digital service lies physical assets. Discover how these tangible assets can provide investors with stable, resilient income and inflation protection.

Explore the strategy Watch 2-min video

Hear from our managers: what AI can't replace

Hear from the investment managers and explore how tangible assets can support resilient income portfolios in Asia.

Why HALO matters?

Tangible assets, sometimes described as HALO* assets, reflect the key characteristics of businesses built on physical infrastructure such as utilities, transport and energy systems.

By focusing on companies with Heavy Assets (real, tangible infrastructure) and Low Obsolescence (built to last, not easily disrupted), investors can access businesses that may offer more predictable cash flows and resilient income over time.

*Heavy Assets Low Obsolescence

These assets are:

Irreplacable by AI
Used every day
Built to last for decades

Examples include companies that own essential infrastructure such as:

Why do tangible assets matter for investors today?

In Asia, and particularly in Hong Kong, income has traditionally been a key priority for investors, alongside diversification and more recently exposure to long-term themes such as AI. This is making tangible assets an increasingly relevant allocation for portfolios.

1. Inflation protection	3. Harnessing AI's infrastructure needs
Many infrastructure businesses can raise prices over time, helping income grow alongside inflation and supporting long-term purchasing power.	The AI revolution is driving greater demand for power, networks and infrastructure, creating compelling long-term growth opportunities.
2. Resilient income	4. Diversification
Companies providing electricity, transport and critical infrastructure benefit from enduring demand, supporting resilient cash flows and growing dividends.	Access AI-related growth through tangible assets, offering diversification and a different source of returns than technology-focused portfolios.

Meet the investment team

James Wigley

Senior Investment Manager
Bruno Lippens

Head of Specialist Equities
Josephine Moore

Senior Investment Manager
Lucia Macaccaro

Investment Manager
Duncan Downes

Senior Client Portfolio Manager

Tangible and HALO* assets explained: a quick guide for investors

Q: What are tangible and HALO* assets?

Tangible assets refer to essential physical infrastructure, such as utilities, transport networks and energy systems. More recently, the term HALO* has been coined to describe how these assets are difficult to replace, built to last and less exposed to disruption.
Q: Why are these assets relevant today?

The global economy depends on physical infrastructure. Long-term trends such as AI, digitalisation and re-industrialisation are increasing demand for electricity, transport and materials, supporting sustained demand for tangible assets.
Q: How do tangible assets generate income?

Companies owning these assets (particularly in sectors such as utilities and infrastructure) provide essential services with stable demand and often benefit from regulated pricing or long-term contracts, supporting predictable cash flows and regular dividends.
Q: Why are tangible assets considered resilient?

Many tangible assets can raise prices over time or have revenues linked to inflation, helping income keep pace with rising costs. Their essential nature and limited competition also support stable earnings across market cycles.

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