RT Journal Article SR Electronic T1 Tracking Error and the Setting of Tactical Ranges JF The Journal of Investing FD Institutional Investor Journals SP 35 OP 44 DO 10.3905/joi.2004.391040 VO 13 IS 1 A1 David E. Kuenzi YR 2004 UL https://pm-research.com/content/13/1/35.abstract 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.