PT  - JOURNAL ARTICLE
AU  - David E. Kuenzi
TI  - Tracking Error and the Setting of Tactical Ranges
AID  - 10.3905/joi.2004.391040
DP  - 2004 Feb 29
TA  - The Journal of Investing
PG  - 35--44
VI  - 13
IP  - 1
4099  - https://pm-research.com/content/13/1/35.short
4100  - https://pm-research.com/content/13/1/35.full
AB  - Investment managers often use tactical ranges around portfolio exposures to assure clients that tracking error to the benchmark will be limited. As these tactical ranges represent a crucial policy issue, they should be determined with great care. Here is a description of a process for establishing these ranges and an analytical method for determining the relationship between tactical ranges and tracking error, using an example from the municipal bond market.