Bank of America has released its 2025 Specialty Asset Management (SAM) Outlook, focusing on the market dynamics affecting commercial real estate (CRE), farmland, timberland, and energy assets. The document suggests that real assets continue to play a crucial role in diversifying portfolios amid a dynamic market environment.
Ken Shepard, SAM Executive at Bank of America Private Bank, noted, "Characteristics of real assets, such as generally being uncorrelated with traditional investments and serving as a hedge against inflation, are increasingly relevant in the current environment." He added that 2025 would present opportunities for selective investments in certain real asset sectors for long-term investors.
The outlook highlights several key themes:
1. CRE is showing positive momentum. Despite recent challenges, investor confidence is rising, supported by factors like rebalancing supply and demand, consistent valuations, and increased liquidity.
2. Farmland presents avenues for stability and diversification, with potential opportunities in the 2025 crop year. Farmland values are stable or slightly lower, allowing for strategic investment adjustments.
3. Timberland offers prospects for long-term investors seeking alternatives, as its biological growth remains largely unaffected by market cycles and geopolitical risks.
4. Global energy use is rising due to factors such as population growth, increased manufacturing, and higher living standards in emerging economies. The domestic energy supply is trending toward natural gas, renewables, and other carbon-friendly sources.
Bank of America's SAM team is experienced in managing diverse assets like timber, farm, and ranch land, oil, gas, mineral interests, real estate, and private businesses. The SAM team works with ultra-high-net-worth clients from Bank of America Private Bank and Merrill, offering a range of complex asset management services.
Nonfinancial assets such as real estate, businesses, and timberland come with inherent risks, including total value loss, natural events, and complex tax conditions. As with any investment, experts recommend consulting independent financial advisors before making or changing any financial strategies.
Bank of America is a major player in the financial sector, providing services to consumers, businesses, and corporations worldwide. It operates approximately 3,700 retail financial centers and 15,000 ATMs across the U.S., serves 69 million clients, and boasts about 59 million verified digital users. Its stock is listed on the New York Stock Exchange under the symbol BAC.
For further details or inquiries, reporters may contact Julia Ehrenfeld at Bank of America.