Third-party funds, the investment funds that give the clients of banks and insurance companies access to external funds, are to grow by €90bn ($105bn) over the next four years, according to a survey by Cerulli Associates, the US-based research consultancy.

The market share of third-party products is expected to increase from 12% to 22% by 2007. Third-party distribution has taken off in the Nordic region in particular in recent years, with most domestic banks offering external funds to clients.