2025 Specialty Asset Management Outlook Released by Bank of America

Core Insights - The 2025 Specialty Asset Management (SAM) Outlook by Bank of America highlights the increasing importance of real assets in diversifying investment portfolios amid high long-term interest rates and persistent inflation [1][2] - Real assets are characterized by their low correlation with traditional investments and their role as a hedge against inflation, making them particularly relevant for long-term investors in 2025 [2] Group 1: Commercial Real Estate (CRE) - CRE is showing positive momentum with growing investor confidence, indicated by rebalancing supply and demand, stabilizing valuations, and increasing liquidity [6] Group 2: Farmland - The 2025 crop year presents opportunities for knowledgeable investors as competitive pressures ease and farmland values remain stable to slightly lower, allowing for strategic maneuvering [6] Group 3: Timberland - Timberland is viewed as an attractive investment for long-term investors with lower risk profiles, as its biological growth is largely insulated from market cycles and geopolitical risks [6] Group 4: Energy Assets - Global energy usage is expected to increase due to factors such as population growth, expanding manufacturing, and rising living standards in emerging economies, with a domestic energy supply favoring natural gas, renewables, and other carbon-friendly sources [6]