The reduction spread over a 12 month period would be about 2.3%. Just because the distribution is slightly lower, does not mean the fund price will drop. If that entire 12 month reduction is taken immediately, the value of the fund would fall by about 21 cents. The ETF may not fall immediately by 21 cents, but with everything going on with the market and high yield funds anything can happen. Of course, PHK has already fallen a lot more than many would have thought. I see a rebound in high yield funds once the FED resolves the zero interest rate policy.