Policy Function Strategy is Capital Advisors' proprietary platform for managing investment portfolios comprised of multiple different asset sectors and style disciplines. The Policy Function platform offers investors an alternative process for determining an optimum asset allocation for their investment portfolios. Policy Function Strategy represents a meaningful departure from "Modern Portfolio Theory" (MPT), which is the framework behind most professional asset allocation disciplines in use today.

The Policy Function process seeks to create diversified investment portfolios for clients that out-perform portfolios derived through the more traditional MPT approach. The distinguishing characteristic of Policy Function Strategy relative to MPT is its discipline of rotating through multiple different asset allocation structures through time as market conditions change, rather than re-balancing to more static asset allocation targets, as prescribed by MPT.

Policy Function Strategy employs an objective, rules-based process to direct transitions from one portfolio structure to the next through time. We refer to the instructions that direct these transitions as "Policy Functions."

"Policy Function Strategy" is a Service Mark of Capital Advisors, Inc.