Fat Prophets Global Contrarian Fund (ASX:FPC) has declared a fully franked special dividend of AU$0.05 per share, representing a 4.56% yield, following the company's strong investment performance, according to a Wednesday Australian bourse filing.

The dividend will be paid on Sept. 25 to shareholders on record as of Aug. 28, the filing said.

The company's upcoming dividend will be eligible for the dividend reinvestment plan (DRP), with shares issued at a 2.5% discount to the volume-weighted average price over three days from Aug. 28, the filing added.

If the share price drops below the fund's net tangible asset value after the record date, the company will purchase shares on-market within 20 trading days to allocate pro rata to DRP participants, issuing new shares only if on-market purchases fall short.