Stasis&#x27; logic is along the right lines - you need to think about it in terms of portfolio management strategy. Effectively, the manager is trying to switch as much of the gains of their fund from being taxed at 40% to being taxed at 15%. A decent explanation here: <a href="http:&#x2F;&#x2F;www.nicholasfunds.com&#x2F;dividend_info.html" rel="nofollow">http:&#x2F;&#x2F;www.nicholasfunds.com&#x2F;dividend_info.html</a><p>You&#x27;re right that it won&#x27;t be a large drop in the bucket. It&#x27;s not news because it&#x27;s a large drop in a bucket, it&#x27;s news because its a valuation change on companies many here follow. Nonetheless, one could object to poor management if Fidelity <i>didn&#x27;t</i> take this action, regardless of size.<p>Note - this only gets at the &#x27;why now&#x27; part of the motivation. What it means for 1) their internal company valuations and 2) implications for shareholders without liquidation preferences is more interesting.