Australia’s prudential regulator has vowed to weed out under-performing pension funds after publishing its first ranking of firms, including those it fears don’t have a sustainable business model.

The inaugural heatmap assessment of default investment plans found 15 had issues with net cash flow or growth that jeopardized their future survival, the Australian Prudential Regulation Authority said Tuesday.

Some 28 funds were found to be charging excessive fees, and nine had net returns significantly below a reference portfolio of passive, low-cost and liquid investments, the data show. APRA Deputy Chairman Helen Rowell said the regulator had contacted the worst-performing funds and asked them to provide plans on how they will address their weaknesses.

“If they are unable to make substantial improvements in good time, we will consider other options, including pressuring them to consider a merger or exit the industry,” she said in the statement. “APRA is determined to weed out the industry’s under-performing tail.”

The A$2.9 trillion ($2 trillion) pension industry is under pressure to lift its performance, after a series of reviews found it was beset by poorly-performing funds, high fees and zombie accounts that cost workers A$2.6 billion a year in unnecessary fees and insurance.

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