Aberdeen's shares slide as net outflows accelerate

* Funds under management falls to 323 bln pounds

* Net outflows rise to 4.8 bln pounds

* CEO Martin Gilbert says investor sentiment "fragile" (Adds details, analyst quote, share reaction)

By Nishant Kumar

LONDON, Feb 3 (Reuters) - Aberdeen Asset Management (Other OTC: ABDNF - news) 's funds under management fell in the December quarter, as accelerated net outflows outstripped gains in investment portfolios and foreign exchange, sending its shares down on Tuesday.

Aberdeen managed 323.3 billion pounds ($485.7 billion) at the end of 2014, down from 324.4 billion three months earlier, it said in a statement on Tuesday.

Net outflows from its funds increased to 4.8 billion pounds during the quarter from 2.8 billion pounds three months earlier, as weaker demand among investors for emerging market funds led to outflows in December.

The result shows the challenges faced by money managers, especially in emerging markets, as investors rejig portfolios in anticipation of higher U.S. interest rates and trim exposure to riskier assets bought in search of higher yields.

"Moves are not big enough to warrant material estimate changes by the market but the volatility in flows is a salutary reminder that the path upwards remains tricky," Jefferies analyst Jason Streets wrote.

Streets rates the firm as a "hold".

At 0919 GMT, Aberdeen shares were down 1.6 percent, underperforming a 1.3 percent rise in the FTSE 100.

Outflows during the quarter negated gains worth 1.3 billion pounds from its funds' performance and 2.4 billion pounds from foreign exchange movements.

Global emerging market funds managed by the firm suffered as net outflows during the quarter increased four times to more than 1 billion pounds from the previous quarter.

"October and November were encouraging, with overall flows in line with the previous quarter and equity flows positive," said Aberdeen's chief executive Martin Gilbert. "However, December was a reminder that investor sentiment remains fragile."

Aberdeen said it was winning new business at good fee margins, while integration of the Scottish Widows Investment Partnership business it bought in 2013 was on track with final cost savings likely to be ahead of its initial expectations. ($1 = 0.6656 pounds) (Editing by Catherine Evans)