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Amid elevated long-term interest rates and persistent inflation, investors turn to real assets to help mitigate market risk

CHARLOTTE, N.C., April 30, 2025 /PRNewswire/ -- Today, Bank of America released a 2025 Specialty Asset Management (SAM) Outlook (PDF) on the market dynamics impacting commercial real estate (CRE), farmland, timberland and energy assets. The paper finds real assets play an increasingly important role in diversifying a portfolio as investors seek to position themselves for long-term wealth creation in a dynamic market.

"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," said Ken Shepard, SAM Executive at Bank of America Private Bank. "For well-informed, long-term investors, 2025 will be a good year to selectively build positions in certain real asset sectors."

The following themes are explored in the 2025 SAM Outlook:

• CRE demonstrates positive momentum: While CRE has weathered a range of challenges over the past few years, investor confidence in the space is growing, signaled by rebalancing supply and demand, stabilizing valuations and increasing liquidity.

• Farmland offers a pathway to stability and diversification: The 2025 crop year holds opportunity for knowledgeable investors as competitive pressures lessen and farmland values remain stable to slightly lower, allowing for more strategic maneuvering.

• Timberland bridges market uncertainties: Long-term investors with lower risk profiles in search of alternatives may find timberland an attractive investment, as biological growth is largely insulated from market cycles and geopolitical risk.

• Energy use increases globally: Myriad factors, including population growth, expanding manufacturing and rising living standards in emerging economies, have paved the way for increased energy usage. Looking ahead, the domestic energy supply will favor natural gas, renewables and other carbon-friendly sources.

Bank of America's SAM team has extensive experience managing timber, farm and ranch land, oil, gas and mineral interests, real estate and private businesses. The team works with ultra-high-net-worth Bank of America Private Bank and Merrill clients who own or seek to acquire real assets, as well as provide a wide range of services in managing these complex assets.

Learn more about diversifying wealth through nonfinancial assets.

Bank of America

Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 69 million consumer and small business clients with approximately 3,700 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock is listed on the New York Stock Exchange (NYSE: BAC).