- Quarterly Schedule of Portfolio Holdings of Registered Management Investment Company (N-Q)

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-Q

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

 

Investment Company Act file number			811-22007
RMR ASIA REAL ESTATE FUND
(Exact name of registrant as specified in charter)
400 CENTRE STREET NEWTON, MASSACHUSETTS					02458
(Address of principal executive offices)					(Zip code)
Adam D. Portnoy, President RMR Asia Real Estate Fund 400 Centre Street Newton, Massachusetts 02458
(Name and address of agent for service)
Copy to:
Brian D. O’Sullivan State Street Bank and Trust Company  801 Pennsylvania Avenue, Tower II, 4 th  Floor Kansas City, Missouri 64102
Julie A Tedesco, Esq. State Street Bank and Trust Company 4 Copley Place, 5 th  Floor Boston, MA 02116
Registrant’s telephone number, including area code:			[phone]
Date of fiscal year end:	December 31
Date of reporting period:	March 31, 2009

 

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RMR Asia Real Estate Fund

Portfolio of Investments — March 31, 2009 (unaudited)

 

Company		Shares		Value
Common Stocks — 83.3%
Hong Kong — 43.0%
Diversified — 17.4%
China Overseas Land & Investment, Ltd.		924,000		$	1,452,934
China Resources Land, Ltd.		1,260,000		1,976,741
Hongkong Land Holdings, Ltd.		405,000		922,732
Hysan Development Co., Ltd.		1,025,000		1,747,958
The Wharf (Holdings), Ltd.		296,000		742,350
				6,842,715
Hospitality — 12.5%
Sun Hung Kai Properties, Ltd.		544,000		4,891,849
Retail — 13.1%
Hang Lung Properties, Ltd.		1,205,000		2,850,404
The Link REIT *		1,160,000		2,302,959
				5,153,363
Total Hong Kong (Cost $22,986,090)				16,887,927
Japan — 33.8%
Diversified — 18.1%
Mitsubishi Estate Co., Ltd.		273,500		3,102,670
Mitsui Fudosan Co., Ltd.		280,000		3,071,558
Shoei Co., Ltd.		25,286		142,661
Sumitomo Realty & Development Co., Ltd.		71,000		793,251
				7,110,140
Office — 15.7%
Nippon Building Fund, Inc. *		280		2,420,031
Nomura Real Estate Office Fund, Inc. *		221		1,237,937
NTT Urban Development Corp.		800		647,463
Orix REIT, Inc. *		290		1,197,138
Tokyu REIT, Inc. *		127		677,585
				6,180,154
Total Japan (Cost $26,235,061)				13,290,294
Singapore — 6.5%
Diversified — 6.5%
Ascendas Real Estate Investment Trust *		1,020,000		820,570
Cambridge Industrial Trust *		4,605,000		758,267
Capitaland, Ltd. *		330,000		506,015
Singapore Land, Ltd.		105,000		219,930
Suntec Real Estate Investment Trust *		640,000		265,268
				2,570,050
Total Singapore (Cost $5,173,189)				2,570,050
Total Common Stocks (Cost $54,394,340)				32,748,271
Warrants — 0.7%
India — 0.7%
DLF, Ltd., Macquarie Bank, Ltd., expiring 6/26/12 (a)		48,000		158,400
Unitech, Ltd., Macquarie Bank, Ltd., expiring 5/29/13 (a)		180,000		124,200
Total Warrants (Cost $1,883,662)				282,600
Short-Term Investments — 10.7%
Other Investment Companies — 10.7%
Dreyfus Cash Management, Institutional Shares, 0.74% (b) (Cost $4,212,561)		4,212,561		4,212,561
Total Investments — 94.7% (Cost $60,490,563) (c), (d)				37,243,432
Other assets less liabilities — 5.3%				2,080,426
Net Assets — 100%				$	39,323,858

 

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Notes to Portfolio of Investments

*                  Company is organized as a real estate investment trust as defined by the laws of its country of domicile.

(a)           As of March 31, 2009, this security had not paid a distribution.

(b)          Rate reflects 7 day yield as of March 31, 2009.

 

See notes to portfolio of investments.

 

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(c)           As of March 31, 2009, the Fund held securities fair valued in accordance with policies adopted by the board of trustees aggregating to $33,030,871 and 88.7% of market value.

(d)          The Fund’s investments for federal income tax purposes, as of March 31, 2009, are as follows:

 

Cost		$	60,490,563
Gross unrealized appreciation		$	496,174
Gross unrealized depreciation		(23,743,305		)
Net unrealized depreciation		$	(23,247,131	)

 

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Fair Value Measurements

 

Under Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements, or FAS 157, fair value is defined as the price that the Fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. FAS 157 established a three tier hierarchy to maximize the use of observable market data and minimize the use of unobservable inputs and to establish classification of fair value measurements for disclosure purposes. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances.

 

When the S&P 500 Index fluctuates significantly from the previous day close, we believe that the closing price in the local market may no longer represent the fair value of foreign securities at the time of the U.S. market close.  Accordingly, in such circumstances, we report holdings in such foreign securities at their fair values as determined by an independent security pricing service.  The service uses a multi-factor model that includes such information as the issue’s local closing price, relevant general and sector indices, currency fluctuations, depository receipts, and futures, as applicable.  The model generates an adjustment factor for each security that is applied to the local closing price to adjust it for post closing events, resulting in the security’s reported fair value.

 

The following is a summary of the inputs used as of March 31, 2009, in valuing the Fund’s investments carried at value:

 

Valuation Inputs		Investments in Securities
Level 1 — Quoted prices		$	4,212,561
Level 2 — Other significant observable inputs		33,030,871
Level 3 — Significant unobservable inputs
Total		$	37,243,432

 

There were no investments in securities characterized as Level 3 on December 31, 2008 or March 31, 2009.

 

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Item 2.  Controls and Procedures.

 

(a)  The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)), are effective, as of a date within 90 days of the filing date of this report, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

 

(b)  There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 3. Exhibits.

 

(a)(1) Certification of Principal Executive Officer, as required by Rule 30a-2(a) under the 1940 Act.

(a)(2) Certification of Principal Financial Officer, as required by Rule 30a-2(a) under the 1940 Act.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

RMR ASIA REAL ESTATE FUND

 

By:	/s/ Adam D. Portnoy
	Adam D. Portnoy
	President
Date:	May 22, 2009

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By:	/s/ Adam D. Portnoy
	Adam D. Portnoy
	President
Date:	May 22, 2009

 

 

By:	/s/ Mark L. Kleifges
	Mark L. Kleifges
	Treasurer
Date:	May 22, 2009

 

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