the post Depression era. In the aftermath of the 1929 stock market crash, Americans turned away from get-rich-quick thinking and focused on investment principles that emphasized prudence, diligence and value. In 1937, the U.S. District Court for the District of Columbia established sound investment criteria that fiduciaries were required to use when they purchased bonds for clients. This subsequently became known as the Legal List. Then in 1947, the court expanded allowable investments to include high-quality common stocks.

                Over the next few decades, strict adherence to the Legal List was expanded to allow what has been referred to as The Prudent Investor Rule. In 1974, further security-selection guidelines were defined by the Employee Retirement Income Security Act (ERISA). This act outlined the responsibility of investment plan sponsors and others to prudently invest plan funds.

                Beacon Investment Company maintains the spirit of the original Legal List, and our portfolios meet the criteria of the Prudent Investor Rule. The prudence and conservative nature of these investment criteria are the overriding consideration for Beacon’s wealth management clients. Indeed, wealth management portfolios generally exceed the quality standards that fiduciaries must meet to fulfill their responsibilities.