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2025 Specialty Asset Management Trends

On April 30, 2025, Bank of America unveiled its much-anticipated 2025 Specialty Asset Management (SAM) Outlook, which offers vital insights into the evolving landscape of investments in real assets such as commercial real estate (CRE), farmland, timberland, and energy assets. As long-term interest rates remain high and inflation becomes a pressing concern, this report emphasizes the significance of real assets in diversifying investment portfolios, especially for those seeking stable long-term wealth.

Increasing Importance of Real Assets

Ken Shepard, a SAM Executive with Bank of America Private Bank, notes that the characteristics of real assets render them increasingly relevant today. These assets typically move independently of traditional investments and can help mitigate the adverse effects of inflation. According to Shepard, well-informed and forward-thinking investors are likely to find 2025 a promising year to strategically embrace positions in specific real asset sectors.

Key Themes from the Outlook

1. Positive Momentum in Commercial Real Estate

Despite various challenges faced by the CRE sector in recent years, there are signs of restoring investor confidence. Notably, this confidence is illustrated through a rebalancing of supply and demand dynamics, steadying valuations, and a noticeable uptick in liquidity. This environment suggests that strategic investments in select CRE sectors could yield promising returns.

2. Farmland as a Pathway to Stability and Diversification

The 2025 crop year presents unique opportunities for informed investors as competitive pressures in agricultural markets ease. With farmland values projected to remain stable to slightly decrease, the potential for strategic maneuvering within this asset class grows more appealing, further solidifying farmland's role as a reliable investment.

3. Timberland: Resilient Amid Market Fluctuations

Long-term investors seeking lower-risk alternatives might turn their attention to timberland. This sector finds favor due in part to its biological growth characteristics, which make it less susceptible to market fluctuations and geopolitical tensions. Timberland represents a stable investment avenue that can withstand the pressures of a turbulent market landscape.

4. The Rise in Global Energy Use

As global populations grow and standard of living improves in many developing economies, energy consumption is set to rise. This trend highlights the potential for investment in natural gas, renewable energy, and other environmentally friendly sources. Positioning within these energy sectors could result in significant gains as the market evolves.

Expertise of Bank of America's SAM Team

Bank of America's SAM division possesses deep expertise in managing complex assets such as timber, farmland, real estate, and energy interests. Their services cater to ultra-high-net-worth individuals and families looking to acquire or manage real assets effectively. The team provides invaluable insights and tailored approaches aimed at maximizing wealth through diversified investment strategies.

As a global leader in financial services, Bank of America strives to support its clientele. With approximately 69 million consumer clients and 4 million small business households, the bank offers innovative solutions that align with contemporary investment philosophies.

Conclusion

The 2025 SAM Outlook provides a strong framework for investors contemplating the best paths toward building wealth in today's complex market landscape. Real assets like CRE, farmland, timberland, and energy assets are positioned for growth, and their inclusion in a diversified portfolio may prove beneficial in achieving long-term financial goals. To maximize investment success, Bank of America advises consulting with independent financial advisors for personalized strategy recommendations.

For more insights on diversifying wealth through nonfinancial assets, visit the Bank of America newsroom and stay informed about the latest trends impacting the asset management sector.