Aberdeen Asset Management saw a fall in its assets under management of 3 per cent to £193.6 billion for the final free months of the year, down from £200.4 billion at the end of the third quarter.

Aberdeen Asset Management saw a fall in its assets under management of 3 per cent to £193.6 billion($316.3 billion) for the final three months of the year, down from £200.4 billion at the end of the third quarter.

Gross inflows in the final quarter of 2013 were £6.8 billion, down £9.6 billion from the previous quarter, in the face of "weaker investor sentiment", the firm said in its quarterly statement.

The firm said that it saw outflows of £11.2 billion for the three months to 31 December 2013, resulting in net outflows of £4.4 billion.

"Business flows reflected the continuing negative sentiment towards Asian and emerging markets generally, particularly later in the quarter. However, we believe the fundamental attractions of the Asian and developing economies and companies that we invest in are compelling," said chief executive Martin Gilbert.

Gilbert said that the company was making good progress in its application for Scottish Widows Investment Partnership, which will significantly "expand and diversify" its assets under management. Part state-owned Lloyds Banking Group announced in November 2013 that it had agreed to sell its SWIP business to Aberdeen for £560 million.

Looking ahead, the firm said that it expected further volatility in markets and investor sentiment in the coming months.