France Valley has launched a European forestry index to track performance across private timberland markets, creating what the natural capital investment manager has described as a unified benchmark for an asset class traditionally evaluated on a country-by-country basis.
FV European Forestry Index, developed alongside S&Partners, measures annual price changes across France, the UK, Sweden, Finland, Latvia, Estonia and Lithuania.
Together, the seven markets cover 55.1m hectares, or 54% of Europe鈥檚 total private forest area.
By using annual price movements rather than absolute valuations, the benchmark avoids distortive cross-country tax, regulatory and ownership differences, France Valley said.
Data from the index reveals an annualised return of 6.3% over the 2014鈥�2025 period with 4.5% volatility, alongside wide regional dispersion ranging from 12.6% per annum in the UK to 4.5% in Sweden.
Arnaud Filhol, CEO and co-founder of France Valley, said: 鈥淧resent in 12 European countries, we were able to observe the performance, volatility and correlations of this asset class. The FV European Forestry Index makes it possible to capture them.
鈥淲e are pleased to make this tool available to investors, and believe it can usefully inform strategic allocation decisions to the European timberland asset class.鈥�
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