Volatility and a decline in investor sentiment for emerging market assets ensured Aberdeen Asset Management saw a decline in its portfolio during the three months ending 31 December.
The quarterly results were particularly impacted by market conditions during December, which offset the positive inflows in equities seen during the preceding two months.
A declining appetite for emerging market assets saw equities in this region suffer net outflows of £1.08bn while fixed income assets saw net outflows of £1.35bn as investors shunned the perceived risk of emerging market debt.
Overall new business for assets under management at the firm’s Aberdeen division saw net outflows of £3.34bn, with every sector experiencing net outflows.
Conditions were no better at its Scottish Widows Investment Partnership, which was bought from Lloyds for £650m at the end of 2013 ensuring it overtook Schroders as Europe’s biggest investment firm.
Scottish Widows Investment Partnership saw total net outflows of £1.45bn with only its property division bucking the trend with a positive net inflow of £114m.
The combined net outflows totalled £4.79bn over the period.
Chief executive Martin Gilbert said: “December was a reminder that investor sentiment remains fragile.
“Despite this and ongoing concerns about Europe and elsewhere, Aberdeen is in good shape.
Shares in Aberdeen closed down 3.4 per cent on the results.