Loading...

EUROPEAN
DIAMOND
FUND

Conserve the value and generate annual profit

European Diamond Fund is Alternative investment fund, investing up to 80% of its assets to diamonds and gemstones.

Absolute unique type of fund. Fund was founded in 2018.
Administered and managed by Scarabaues AG, Liechtenstein based company Custodian bank: Credit Suisse AG, Zurich, Switzerland. Vault: Trisuna Lagerhaus AG, Triesen, Liechtenstein. Risk Management: SynoFin Risikomanagement Service AG, Vaduz, Liechtenstein.

Basic assumptions
and principles of EDF investments

European Diamond Fund

Liquidity

EDF is capable to purchase precious stones at high liquidity discounts.

Growth

EDF expects long-term permanent appreciation of the market prices of diamonds and gemstones.

Experience

EDF’s has wide expertise and experience with processes of rough stone transformation into cut and polished diamonds and gemstones.

Rules

EDF will fully adhere to rules of Kimberley process regulation.

Ethic

EDF will firmly stick to its Anti Money Laundering and Counter Terrorism Financing policies.

Transparent

The Fund purchases and sales will be made solely with approved and well known counterparts.

feature-image

European Diamond Fund

EDF Strategy

Collection of sufficient amount of resources to manage, in long-term horizon the EDF plans to manage € 50 million.

Purchases

of the most liquid stones, i.e. white diamonds of the weight of 3 to 5 carats at best prices, using the ability to pay immediately (liquidity discount).

Purchases of other diamonds

incl. extraordinary coloured diamonds and gemstones - rubies, sapphires, spinels, emeralds and tanzanites (rare colours, large, from selected mines with a highly valued origins) which will appreciate significantly through the time; and hold them long-term.

Acquisition of unique rough stones

predominantly from first hand and manage their cutting, polishing, certification and appraisal.

Sale

of selected diamonds and gemstones in order to generate annual dividend for shareholders.

Three different portfolio classes

Long term hold portfolio (LTH)

where all assets will be appraised at 85% of their certification value (in the case of white diamonds, Rapaport index prices will be used). These stones which are the most valuable part of the Fund portfolio will not be regularly sold.

Ready to sell portfolio (RTS)

where all assets will be appraised at 50% of their certification value. These stones will be offered for a sale. The stones with high current liquidity, due to an increased demand, will be contained in this portfolio.

Rough portfolio

containing rough stones, where all assets will be appraised at purchase price. Rough stones will be converted into certified and appraised cut stones. Best quality part of thus obtained cut stones will remain in the long term hold portfolio. It is expected that the EDF will make approximately 30% net yield on this activity with the Rough portfolio.

Rough stones processing

Rough stones

Will be purchased mostly from mines or in places close to mines, generally from first hand. Exclusively coloured rough stones will be purchased. Rough diamonds are excluded due to Kimberley process.

The rough stones will be put into Fund assets at their purchase value

And with the permission of the Fund Manager, they will be released for cutting, polishing and then certification and appraisal of cut stone.

Cutting and polishing

Will be done in the experienced and reputed cutting workshops in Antwerp, Bangkok, Surat and other places under the inspection of one of Fund founders or experienced gemologist. The following certification and appraisal will be performed by listed certification agencies.

European Diamond Fund

Certification agencies

Appraisal based on the above certificates will be done by the company EDIGEM Ltd., Lucerne, Switzerland.

Diamonds

  • Gubelin Gem Lab Lucerne, Switzerland
  • International Gemological Institute (IGI) Antwerp, Belgium
  • Gemological Institute of America (GIA), Antwerp, Belgium (GIA Lab Direct Consolidator)
  • HRD Antwerp diamond lab, Antwerp, Belgium
Other gemstones

  • Gubelin Gem Lab Lucerne, Switzerland
  • Gemmological Laboratory Austria (GLA), Vienna, Austria
  • Swiss Gemmological Institute SSEF, Basel, Switzerland

European Diamond Fund

Role of Scarabaeus Fund Management

Scarabaeus Fund Management

Asset assessment and accounting

Calculation of the issue and of the redemption prices

Calculation of dividends or profit reinvestment

Fulfilment of the obligations to disclose information and submit reports

Contact person for the shareholders

Shareholders register

European Diamond Fund

Role of Synofin Risk Management

Synofin Risk Management

Regular risk management reports

Evaluation of Fund portfolio risk on regular basis




The vision of the European Diamond Fund is to conserve the value and generate annual profit for its investors without taking risks of financial or real estate assets thus being an alternative or complementary investment to traditional ones, in other types of assets.