That's it! Coarse perlite. It's used to hold water in bark mixes.
Now you have me worried, Ross! I didn't think that perlite held water. I thought it was to help create air spaces within a bark or sphag medium and to help the mix drain well. If what you say is correct, then I've been doing things wrong -- maybe that's why I kill some of my plants.
Shirley, I think it is supposed help hold some moisure and creates a more open mix. Every premixed bag of bark or coconut husk chips I buy has it in it or I mix in some of my own. I don't think it causes any problems with holding too much moisure. Heres a link from Rays webside that describes a bunch of potting media including perlite if you scroll down. Hope that helps!
Sorry, Ross, if I seemed to be contradicting you. I've always used coarse perlite to open up my mixes but I just never thought of it being water retentive! Always something new to learn!