Physical Diamond Fund Ltd

EUR Class C Series 1

Fund Investment Objectives

The objective of the Physical Diamond Fund is to achieve a maximum total yield by investing in a wide and diversified portfolio of natural physical polished diamonds and coloured diamonds. The diamonds are directly sourced from producers and diamond exchanges and all diamonds come with a return guarantee. The gemstones are certified by the world's largest certification Gemological Institutes (GIA, IGI, HRD, FM) and come with the "Forevermark" grading report, which guarantees a diamonds unique qualities: its cut, clarity, colour and carat weight. The diamonds are held in bonded warehouses throughout the world and are protected with the highest level of security and access control and all diamonds are insured. By trading the diamonds held in its portfolio the Fund can earn additional returns on investment. A key principal of the Fund's investment strategy is that it will only invest in diamonds which have market potential, as diamonds with a market potential benefit from an increased demand and provide diversification to a traditional, physical diamond portfolio. The evaluation of diamonds purchased by the Fund is based on the internationally accepted standard, the "Rapaport Diamond Report". The Rapaport Price List is the primary source of diamond prices and market information and is the international benchmark used by dealers to establish diamond prices in all the major markets. The diamonds in the fund will be traded with a discretionary and diversified strategy. The diamonds will comply with the following criteria: (a) all diamonds will be sourced directly from producers and the "Worldwide Bonded Warehouses"; (b) all diamonds will be independently certified by recognized gemmological institutes such as GIA, IGI and HRD; and (c) no diamonds will originate from any war-zone (in compliance with the provisions of the Kimberley Process, the aim of which is to prevent "blood diamonds" from entering the market). The selection of diamonds and portfolio structure are based on a fundamental analysis process. Due to supply and demand the Investment Manager combines the best chance of success on multi-level and high-quality skills. Recommended investment horizon: Long-term 5 - 10 years. The Fund seeks a benchmark independent approach to a target return of 8% per annum. Minimum Investment is in USD. AUM reflects aggregate of various series classes and is demoninated in EUR.