Active managers face headwind in Oz test: Tracking error now a big factor in superannuation fund performance reviews.

The challenges facing Australian superannuation funds in pursuing the best possible retirement outcomes for participants while passing a new performance test the government introduced last year are proving a headwind for managers of contrarian, high-active-share equity strategies. Funds that fail two years in a row will be restricted from taking in new members - a formula some industry veterans have described as a virtual death sentence, pressuring funds to merge their assets into bigger, better-performing funds. [Extracted from the article]