BT Super managing director Melinda Howes said she supports the test, but pointed to the recent performance of BT’s funds that returned around 25 per cent last financial year.

“We acknowledge the outcomes of the new industry annual superannuation performance assessment,” she said. “The trustee has worked hard and invested heavily to improve member outcomes and we are seeing the results of this in our recent performance.”

A Group Super spokeswoman acknowledged the CBA Group Super fund did not pass the test.

“This is due to a number of underlying factors, including some differences in the investments we hold compared to the benchmark asset classes they are measured against, and underperformance of some of our investments,” she said.

“We will continue to review our products, member services and investment strategy, and continue to be guided by the best interests of our members.”

Superannuation Minister Jane Hume, who has led the government’s super reform agenda, said the test will improve efficiency and transparency in the sector.

“Today is a big day for super fund members and Australia’s future retirees,” Minister Hume said. “The government is hauling performance out of the darkness and into the light – and the bright sunlight of accountability will be an uncomfortable reality for some.

However, Australian Institute of Superannuation Trustees chief executive Eva Scheerlinck said the test had not been applied to “more than one third of super savings”.

“The legislation and regulations carve out a range of ‘Choice’ funds, containing more than $500 billion in assets from performance testing. The Choice sector has been described by the APRA as being at the ‘poorer-performing end of the spectrum’,” she said.

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The Association of Superannuation Funds Australia chief executive Martin Fahy said members should “exercise caution” before switching funds.

“ASFA has long supported the orderly removal of habitually underperforming products, however some of those called out by this test are in fact good products which have delivered excellent returns to their members over a long period of time,” he said.

“This is a retrospective, relative performance assessment where the so-called underperforming products are compared against top-performing products.”

Industry Super Australia said only funds that pass the performance test are allowed to participate in its upcoming marketing campaign. “Members can continue to trust that the Industry SuperFund symbol is the mark of a quality fund with good long-term performance and low fees.”