Stay Home on Asian Real Estate Fund

I am a big believer in searching for new products and new markets. Even if you decide to avoid the vehicle for now after kicking the tires, the study alone can be worthwhile.

This is the case with the RMR Asia Pacific Real Estate Fund (RAP Quote). It's a new fund, listed in May, and as the name implies, it invests in real estate companies.

It is nothing like the REITs that U.S.-based investors are used to. With domestic REITs and REIT funds, yield is the primary objective; the RMR fund's goal is capital appreciation. In fact, I found no mention of targeting dividends in the prospectus. Therefore, the ride could be bumpier with this fund than with a U.S. REIT fund.

It owns foreign stocks traded locally; its biggest holdings are in Japan (38%), Hong Kong (27%) and Australia (18%). It has smaller holdings in Singapore and Thailand, and it is permitted to invest in New Zealand, India and South Korea. ...