GFI France Valley Forêts’ forest management meets 5 of the 17 Sustainable Development Goals (SDGs). As such, this solution falls under Article 9 of the European Union’s Sustainable Finance Disclosure Regulation (SFDR) classification. In other words, GFI aims to improve environmental and social performance.

This financial product, 100% taxonomically aligned, has as its investment strategy the purchase of forest land with the sustainable objective of protecting biodiversity and mitigating climate change. The achievement of these objectives will be measured using two sustainability indicators, which will also serve as indicators that this product does not significantly undermine other sustainability factors. These indicators are verified internally by France Valley and audited annually by Novethic.

GFI France Valley Forêts I to VIII have been awarded the Greenfin label. This reference tool, created and supported by the French Ministry of Ecological and Solidarity Transition, guarantees investors, both institutional and individual, that the investment product contributes effectively to financing the energy and ecological transition.

The performance of GFI France Valley Forêts is based on two elements: the return from wood harvesting (not guaranteed, it is by nature irregular even if the number of forests allows a certain smoothing), and the evolution of the value of the units (up or down), according to the evolution of the forest market.

Liquidity is not guaranteed. It is organized through a withdrawal/subscription mechanism; liquidity is a function of unit subscription requests registered by the Management Company: as GFI is a variable-capital investment, partners’ requests to withdraw must be offset by new subscriptions. No guarantee can be given as to the resale period or the sale price. The Management Company also aims (but cannot guarantee) to retain 10% cash to ensure liquidity in the event that the subscription/withdrawal market is blocked. As a last resort, the GFI may dispose of forestry assets, which is not guaranteed and may take time. Please note: liquidity is not guaranteed, either in terms of time or price; the sale of shares on the secondary market may prove difficult and require time to find a buyer; the conditions for the sale of shares in terms of price may vary over time.

18% reduction in Income Tax (in return for a minimum blocking of shares from 5 ½* to 7 years and a risk of capital loss – the recommended retention period is 10 years), in the limit of a subscription of 50,000 euros for a single person and 100,000 euros for a couple, i.e. a tax reduction of 9,000 euros and 18,000 euros respectively. This reduction is subject to the overall cap on tax niches of 10,000 euros.
Exemption from IFI (Real Estate Wealth Tax), without limit of amount (subject to holding less than 10% of the capital and voting rights of the GFI).
75% reduction in free transmission rights during donations or inheritances, without capping or constraint on lineage or conservation of shares, but with a commitment to sustainable exploitation over 30 years made by the Groupement Forestier. Applies to the share actually invested in Forest (which is not guaranteed).

France Valley insures its forests against storm and fire risks. The most significant risk is that of storms. However, the value of the investment is partly protected by the very nature of the forest asset, which retains a significant land value even in the event of a natural disaster. Storms can occur both on the coast and inland. Insurance to cover this risk does exist, but in most cases it offers only partial coverage (capped at less than the value per hectare). Fires are spectacular and worrying, but less frequent and less devastating than storms, as long as the forests are not located in the southern half of the PACA region. As in the case of storms, insurance exists, but it too only covers part of the value per hectare. The best insurance is operational: variety (selection of several forest areas); geography, species, stand maturity (from planting to mature afforestation). What’s more, an owner with the human and material resources at his disposal, either directly or through his subcontractors, can react quickly in the event of a storm to limit its effects.

Investment fees (subscription commission). There are no exit fees;
Recurring management fees, which are deducted from the return on GFI assets;
Costs related to the acquisition of forestry assets, which are capitalized in the value of GFI units.

Although forestry investments are based on a tangible asset, there is no capital guarantee, as the value of a forest is subject to fluctuations in supply and demand. France Valley cannot provide any guarantee as to the performance or value of the shares. In addition, the above tax benefits are not automatic; they depend on the situation of each individual, which must be examined individually. In addition, the liquidity of the shares is not guaranteed. More specifically, forestry investments are subject to weather risks (storms, frost, drought), fire and health risks (fungus, insects); the latter cannot be insured, and coverage for the first two is examined on a case-by-case basis.