Knowledge Base

What tax benefit is associated with investing in a forestry group under the DEFI-Forêt scheme?

Full exemption from wealth tax (IFI)

25% income tax reduction for 8 years

50% deduction on the value of forests for inheritance tax

CSG exemption on forestry income

What is the primary role of authorised participants in the operation of ETFs?

Managing the portfolios of retail investors

Creating and redeeming ETF shares directly with the fund

Setting listing prices on the secondary market

Ensuring compliance with UCITS rules

What is the legal distinction between traditional forestry groups and Forestry Investment Groups (GFI)?

GFIs may make public offerings and are approved by the AMF

Traditional forestry groups have a maximum life span of 50 years

GFIs have shares tradable on financial markets like stocks

Traditional forestry groups require AMF approval for their creation

What is the distinctive feature of capital in a traditional forestry group?

It is represented by listed shares

It is represented by non-negotiable ownership interests not tradable on financial markets

It must be fully paid up at the time of subscription

It is managed by an AMF-approved management company

Typical legal structure of ETFs in Europe

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Synthetic replication of an ETF completely eliminates counterparty risk.

True

False

Physical replication of an ETF means the fund directly holds all the securities in the benchmark index.

True

False

Categorize items by dragging them to the appropriate zones

Items to categorize:

25% DEFI-Forêt income tax reduction for 8 years

Segregation of assets under the custody of an independent depositary

Partial IFI exemption depending on the level of ownership

Counterparty risk limited to 10% of net assets

Categories:

Forestry group advantages

ETF advantages