SCOTTISH investment house Aberdeen Asset Management has seen funds under management drop by £2 billion in the past three months due to a combination of market falls and its decision to restrict access to popular emerging markets mandates.

Aberdeen said it attracted £300 million of new client cash in the three months to the end of June, its third quarter, compared to a £700m inflow in the same period of the previous year.

With market falls and foreign exchange movements taking out £2.3bn over the period, assets under management came in at £182.7bn, 1.1% lower than three months earlier.

However, the performance was stronger than many in the City had expected.

Chief executive Martin Gilbert said: "This has been another successful quarter for Aberdeen, despite the global economic uncertainties and subdued conditions in the world's financial markets."

Aberdeen's finance director, Bill Rattray, said the slowdown in inflows to its global emerging markets was planned to ensure that cash was coming in and in sustainable amounts that allowed it to find investment opportunities.

The house is aiming to keep net flows into the sector below £2bn a year.

It took in a net £794m in the quarter, compared to £3.6bn in the three months to the end of March.

Mr Rattray said: "We are comfortable with that."

Overall, net flows into its equity ranges totalled £2.5bn, against £4bn for the previous three months.

Meanwhile, its fixed-income funds, which have seen a steady stream of outflows since struggling during the credit crunch, continued to see redemptions.

A net £1.6bn was pulled out during the quarter, an acceleration on the £265m taken out in the previous three months.

Repeating a pattern seen for some months, Aberdeen said that it had benefited from inflows to higher-margin equity products while outflows were from low margin areas.

Therefore, the inflows added £15m to Aberdeen's annual revenues.

JP Morgan Cazenove analyst Rae Maile wrote in a client note: "The story of improving business mix at Aberdeen has not played out yet."

Owen Jones, analyst at Shore Capital, said: "Momentum is a key driver within the asset management sector and we see it as remaining behind Aberdeen."

Aberdeen is making a push to sell its funds to European and North American investors.

The company has for the past few years been trying to break into the US funds scene, which is typically a tough market for overseas managers. It is to step up its drive with the opening of an office in New York.

Mr Gilbert said he expected further volatility in markets in coming months.

Investors continue to view Aberdeen as a future income play.

The company remains on track to accumulate sufficient cash, an estimated £200m to £250m, that regulators require it to hold on its balance sheet, by the end of the year.

At this point many in the City hope the company will embark on a return of cash either through share buy-backs or upping its dividend.

Aberdeen's shares closed down 6.4p or 2.6% at 244.8p on a day when the FTSE-100 fell 2.1% on renewed worries about the eurozone.