Dividend Resumption Marks Turning Point as Fund Navigates Geopolitical Risks
Fat Prophets Global Contrarian Fund reports a 5.06% rise in pre-tax NTA driven by gains in Japanese and Chinese markets, announcing a special dividend after years of pause.
- Pre-tax NTA increases 5.06% to $1.6359 per share
- Strong gains from Japanese financials post US-Japan trade agreement
- China/Hong Kong holdings boosted by $170 billion hydro infrastructure project
- BT Group and Mitsubishi Heavy Industries deliver positive earnings updates
- Special fully franked 5 cent dividend declared, resuming payouts
Fund Performance Driven by Geopolitical Shifts
The Fat Prophets Global Contrarian Fund has posted a notable 5.06% increase in its pre-tax net tangible assets (NTA), reaching $1.6359 per share as of 23 July 2025. This uptick reflects a confluence of positive market developments, particularly in Japan and China, which have buoyed the fund’s portfolio after a period of relative quiet.
Central to the fund’s recent gains is the sharp rally in Japanese equities following the announcement of a trade agreement with the United States. This deal has effectively removed tariff uncertainties that had weighed heavily on Japanese exporters and financial institutions. The Fund’s continued significant exposure to Japanese banks and financials has paid off handsomely, underscoring the strategic value of contrarian positioning in markets undergoing structural change.
China’s Infrastructure Stimulus Adds Momentum
Meanwhile, the Fund’s holdings in China and Hong Kong have also contributed positively, supported by the government’s greenlighting of a massive $170 billion hydroelectric project. This fiscal stimulus is viewed as a game-changer for the region’s economic outlook, with expectations of further large-scale infrastructure initiatives to follow. Such government-led spending programs often provide a robust tailwind for related equities, and the Fund appears well positioned to capitalize on this trend.
Corporate Earnings Boost Confidence
On the corporate front, British telecommunications giant BT Group has emerged as a standout performer on the FTSE 100, delivering a first-quarter profit that exceeded market expectations alongside an upbeat earnings outlook. Similarly, Mitsubishi Heavy Industries in Japan raised its earnings guidance, reinforcing investor confidence in the Fund’s holdings. These positive earnings surprises add a layer of fundamental strength to the Fund’s recent market-driven gains.
Dividend Resumption Signals Confidence
Perhaps most notably, the Fund’s board has declared a special fully franked dividend of 5 cents per share, marking the resumption of dividend payments after several years. This move signals strong investment returns and a renewed confidence in the Fund’s underlying assets and strategy. For investors, the dividend resumption is a welcome development, potentially attracting income-focused shareholders back to the Fund.
Overall, the Fat Prophets Global Contrarian Fund’s latest update paints a picture of a portfolio benefiting from timely geopolitical and economic shifts, combined with solid corporate earnings. The Fund’s contrarian approach appears to be paying dividends; both figuratively and literally.
Bottom Line?
With dividends back and markets shifting, the Fund’s next moves will be closely watched by investors seeking contrarian opportunities.
Questions in the middle?
- Will the Fund sustain dividend payments beyond this special distribution?
- How might evolving US-Japan trade relations impact future portfolio allocations?
- What further infrastructure projects could China announce to support the Fund’s holdings?
