RMR Preferred Income Fund plans preferred security portfolio, weighted to real estate

By Toni Weeks

San Diego, April 18 - The RMR Preferred Income Fund registered a new fund that will invest primarily in preferred securities, including an emphasis on those from the real estate sector, in an N-2 filing with the Securities and Exchange Commission.

The initial registration is for a token $1 million common shares. There will be a greenshoe.

The newly organized, non-diversified closed-end management investment company intends to list its common shares on the NYSE Amex under the symbol "PIF."

The fund's objective is to provide high current income by investing primarily in preferred securities, with at least 80% of its managed assets invested in preferred securities and at least 50% of its managed assets invested in preferred securities issued by real estate companies and real estate investment trusts. Managed assets are equal to the net asset value of the fund's common shares plus the principal amount of any borrowings outstanding.

The portfolio managers will be Fernando Diaz, Adam D. Portnoy and Barry M. Portnoy.

The public offering price, sales load and underwriters participating in the offering have not yet been determined.

Newton, Mass.-based RMR Advisors, Inc., an affiliate of Reit Management & Research LLC, will serve as the fund's investment adviser.

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