TY - JOUR T1 - Tracking Error and the Setting of Tactical Ranges JF - The Journal of Investing SP - 35 LP - 44 DO - 10.3905/joi.2004.391040 VL - 13 IS - 1 AU - David E. Kuenzi Y1 - 2004/02/29 UR - https://pm-research.com/content/13/1/35.abstract N2 - 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. ER -