Retail managed funds had $503.9 billion in funds under management (FUM) at the end of September 2010, a decrease of 0.6 per cent compared to September last year, according to data from Plan for Life Actuaries and Researchers.

The lack of net inflows largely reflected the underlying investment markets, the research firm said.

"[Investment markets] after an initial strong bounce back from the global financial crisis in 2009, have more recently been oscillating up and down in sync with whatever the latest economic recovery or yet another crisis headline happens to be and consequently have just ended up going more or less sideways," it said.

Gross inflows dropped by 11.7 per cent, but were affected by the closing down of the Macquarie Cash Management Trust and the subsequent release of its funds into the banking system.

BT Financial remains the largest provider of retail funds with $92.8 billion, or 18.4 per cent of the Australian market, when calculated at the administrator level.

These figures include badged or white label products distributed by separate entities.

When calculating market share based on the distribution and marketing of the funds, rather than the administrator, National Australia Bank (NAB)/MLC, including Aviva, was the largest provider at $79.1 billion, or 15.7 per cent of the market.

At the end of September, when NAB had not yet acquired Aviva, NAB/MLC had a market share of 11.2 per cent at $56.7 billion.

Wholesale FUM increased over the 12 months to the end of September by 7.3 per cent to $270.6 billion.

Vanguard Investments, NAB/MLC and Platinum Asset Management all reported substantial double-digit annual growth rates.

The highest gross inflow growth over the year was achieved by Schroders Australia, with its FUM jumping from $1.8 billion to $4 billion over the 12 months to the end of September, an increase of 122 per cent.

State Street Global Advisors, IOOF and Macquarie recorded significant falls in their inflows.