Negative sentiment towards emerging markets has been highlighted as a key factor in the decrease in AUM from £324.4 billion to £283.7 billion.
Martin Gilbert, chief executive of Aberdeen Asset Management, said: "The cyclical correction in Asian and Emerging Markets and resulting negative investor sentiment has, as expected, led to further flows from our equities business. While we believe the current weakness may have some way to run, the long term fundamental attractions of investing in these high growth economies remain compelling for patient investors.
"We continue to rebalance and diversify the business, to focus on managing our costs and to generate cash and this has helped to mitigate the impact of the outflows we've seen.”
Chairman Roger Cornicksaid: “Net outflows were £33.9 billion and the main contributing factors were weak investor sentiment towards Asia and Emerging Markets and expected outflows from closed life books managed for insurers. We have also been impacted by our share of withdrawals by sovereign wealth funds.
“We recognise that market conditions are challenging in the near term, but continue to commit to active asset management through our disciplined, long term approach to investing.
“In equities, net outflows rose from £13.0 billion in 2014 to £16.4 billion this year. A major factor has been asset allocation changes by clients, largely on the basis of their views on macroeconomic factors. In particular, investors have reduced exposure to Asia and Emerging Markets.
“This was a persistent theme during the year, but was more pronounced in the final quarter, with the industry experiencing the worst quarter for outflows from this asset class since the global financial crisis. This asset allocation theme was compounded by a number of sovereign wealth funds reducing their market exposure in response to the low oil price.”
The firm did, however, increase its net revenue, which went up 5% to £1,169.0 million from £1,117.6 million and underlying profit before tax increased to £491.6 million, a rise from £490.3 million.
Mr Gilbert said: “These solid financial results reflect, in part, the work we have undertaken to diversify the business and maintain a strong balance sheet.”