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The Prudent Man Rule is based on common law stemming from the 1830 Massachusetts court formulation, ''Harvard College v. Amory''〔9 Pick. (26 Mass.) 446 (1830). The formulation has a longer history, however, see ''Belchier v Parsons'' (1754) 96 ER 908, regarding a trustee in bankruptcy〕 The prudent man rule directs trustees "to observe how men of prudence, discretion and intelligence manage their own affairs, not in regard to speculation, but in regard to the permanent disposition of their funds, considering the probable income, as well as the probable safety of the capital to be invested." Under the Prudent Man Rule, when the governing trust instrument is silent concerning the types of investments permitted, the fiduciary is required to invest trust assets as a "prudent man" would invest his own property with the following factors in mind: *the needs of beneficiaries; *the need to preserve the estate (or corpus of the trust); and *the amount and regularity of income. The application of these general principles depends on the type of account administered. The Prudent Man Rule continues to be the prevailing statute in a small number of states, in particular with regards to investments permitted by mutually-chartered institutions such as savings banks and insurance companies. ==Investment Choices== The Prudent Man Rule requires that each investment be judged on its own merits and that speculative or risky investments must be avoided. Under the Prudent Man Rule, certain types of investments, such as second mortgages or new business ventures, are viewed as intrinsically speculative and therefore prohibited as fiduciary investments. As with any fiduciary relationship, margin accounts and short selling of uncovered securities are also prohibited. In contrast with the modern Prudent Investor Rule, isolated investments in a portfolio may be imprudent on individual merits at the time of acquisition, however, as a part of a portfolio, the investment could be prudent. Thus, a fiduciary may not be held liable for a loss in one investment. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「prudent man rule」の詳細全文を読む スポンサード リンク
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