The forest management of SA France Valley Revenu Europe meets 5 of the 17 sustainable development objectives (SDGs). As such, this investment solution falls under article 9 of the classification of the SFDR (Sustainable Finance Disclosure Regulation) of the European Union. In other words, SA has an objective of improving the situation in terms of the environment and social relations.

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.

The performance of SA France Valley Revenu Europe 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 with a withdrawal/subscription mechanism; liquidity depends on share subscription requests recorded by the Management Company: Shareholder exit requests must be offset by new subscriptions. No guarantee can be made on the time limit for resale of shares or on the transfer price. The Management Company also has the objective (unguaranteed) of retaining 10% of cash in order to ensure liquidity, in the event that the withdrawal/subscription market is blocked. Ultimately, the SA may sell forestry assets, which is not guaranteed and may take time. Please note: liquidity is not guaranteed, whether 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 of 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 annual subscription limit of €50,000 for single, widowed or divorced taxpayers and €100,000 for married taxpayers or those bound by a civil solidarity pact subject to joint taxation, i.e. a tax reduction of €9,000 and €18,000. This reduction is subject to the overall cap on tax niches of €10,000.
Exemption from IFI (Real Estate Wealth Tax), without limit of amount (on condition of holding less than 10% of the capital and voting rights of the SA).

There is no possibility of health risk coverage. It is here the variety of species and the anticipation of global warming that will make it possible to limit it. Regarding storm and fire risk, the objective is to cover it with insurance, but France Valley will study the possibilities of coverage on a case-by-case basis, depending on existing insurance offers and their conditions. It is therefore not systematic. The biggest risk is storms. The value of the investment is nevertheless partly protected by the very nature of the forest asset, which retains significant land value even in the event of a natural disaster. Insurance to cover this risk only offers partial coverage (capping lower than the value per hectare). Fires are worrying, but less frequent and less devastating than storms, as long as the most risky areas are excluded. As with storms, insurance does not always exist and also only covers part of the value per hectare. The best insurance is operational: variety (selection of several forest areas); geography, species, maturity of stands (from plantation to mature woodland). In addition, an owner with direct human and material resources or from its subcontractors will be able to react quickly in the event of an incident in order to limit its effects.

Investment costs (any entry fees, subscription commission). There are no exit fees;
Recurring management costs, which are deducted from the return on the SA’s assets;
Costs linked to acquisitions of forestry assets, which are capitalized in the value of the SA shares.

Forestry investment, although based on a tangible asset, does not present a capital guarantee, the value of a forest being subject to fluctuations in supply and demand. France Valley cannot provide any guarantee on the return or change in the value of the shares. Furthermore, the above tax benefits are not automatic, they depend on each person’s situation, which must be examined individually. Furthermore, the liquidity of the shares is not guaranteed. More specifically, forestry investment is subject to weather risks (storms, frost, drought), fires and health risks (fungi, insects); the latter cannot be insured, coverage for the first two is studied on a case-by-case basis.