The PDS for the fund highlights the approach taken with...

The PDS for the fund highlights the approach taken with derivatives - "SPI futures are the only derivative instruments permitted by the Investment Strategy. SPI futures are a derivative product which enables investors to trade movements in the S&P/ASX 200 Index in a single transaction. SPI futures may be used for cashflow and exposure management so that the Plato Fund Portfolio, and if relevant the Company’s portfolio, remains within the cash exposure guidelines (cash exposure cannot exceed 10% of the value of the Plato Fund Portfolio)."

PL8 calculates a NTA each week, with a one week delay -

21st February pre tax was $1.156, post tax $1.141 Closing share price was $1.185
29th February pre tax was $1.045, post tax $1.063 Closing share price was 1.085

For the week indicated, pretax dropped 9.6%, post tax dropped 6.8% actual closing share price dropped 8.4%

In the same week XAO dropped 9.94% XJO dropped 9.77%

From the PDS and the drop in the week, there does not seem to be a strategy for making money in a market downturn, seems more a rule to not exceed 10% cash by using SPI futures. I am sure PL8 would have increased its amount of cash in the last few weeks, and uses the money in SPI futures trading, which should be better than the interest rate. Mind you the wild swings in the market would make it challenging to pick the direction of the SPI futures.

For me, looks like a good LIC with monthly dividends. Will be interesting to see how it performs over the next few months in the turmoil. I am planning to increase my holding at some point.

George