Plays important roles in the production of 11-cis retinal and in visual pigment regeneration. Capable of catalyzing the isomerization of lutein to meso-zeaxanthin an eye-specific carotenoid (By similarity). an all-trans-retinyl ester + H2O = 11-cis-retinol + a fatty acid + H(+) lutein = (3R,3'S)-zeaxanthin all-trans-retinyl hexadecanoate + H2O = 11-cis-retinol + H(+) + hexadecanoate Binds 1 Fe(2+) ion per subunit. Attached to the membrane by a lipid anchor when palmitoylated (membrane form), soluble when unpalmitoylated. Retinal pigment epithelium-specific. Expressed at 16 hours post fertilization (hpf) in the pineal gland, a light-sensitive endocrine organ. Expression in the retinal pigment epithelium (RPE) is initiated in the ventronasal patch at 40 hpf, preceding photoreceptor differentiation by a few hours. During subsequent development, expression in the RPE becomes stronger and more widespread, covering the entire RPE except for the cilliary margin by 56 hpf. Palmitoylated. Belongs to the carotenoid oxygenase family.