Property causing problem for Schroders

After a strong first year, negative shift in sentiment against asset class hits group's Global Property Securities fund

In its first 12 months, Jim Rehlaender could do little wrong on the Schroders Global Property Securities fund. The vehicle generated returns in excess of 30%, buoyed by soaring property share prices in across the globe. Assets soon followed and the fund grew from £53m at the start of 2007 to close to £300m today. However, as the fund approaches its second anniversary, sentiment towards property shares has swung sharply negative. A major sell-off in property stocks and Reits in Europe and the UK has left the New York-based manager sitting on one-year returns of -3.1% to 12 November. ...