Dud super funds manipulate fees and reclassify investment assets to lower the hurdle they must clear on a government super test, new analysis shows.
Industry Super Australia (ISA) analysis of the of the Your Future Your Super test results shows many poorly performing super funds shifted assets to categories with lower benchmarks and exploited a fee loophole that boosted their test score but did not reduce fees overall or increase investment returns to members.
In two years of benchmarking the gap between the worst performing MySuper products and the best has not closed - and overall, the sector's performance has not improved.
The lack of investment performance improvement is partly due to test manipulation.
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