Reducing ESxi vDS MTU to 1460

Hi,

We're looking at a network team request to reduce the MTU on our ESXi Servers from 1500 to 1460. We've a single Distributed vSwitch (2 x 10Gb Uplinks & NetIOC) with all the Management, FT, vMotion and VM Port Groups under it. I've searched and can't find reference to anyone reducing the MTU in this way and wondered what the risk is? The reason behind the request is to support the packet overhead of encryption on a WAN link we're migrating over (avoids fragmentation and increases transmission speeds with point to testing done so far). Would the subsequent migrated VM O/S also need to have their maximum MTU transmission size adjusted when running on an ESXi Host and a vDS configured this way? Any advice appreciated.

Thanks

Mike