Whether April showers will indeed bring flowers to the fund market remains to be seen, but showers there were indeed for some investors this month when a number of high-flying PIMCO and Allianz closed-end funds cut their distributions. These funds were rewarded with double-digit price drops as investors expressed their disappointment with what previously appeared to be high and stable distribution rates.
What followed was a predictable sequence of commentary, with some investors expressing disappointment with the cuts, while others pointed out what seemed just a matter of time to many. Our own blog