Chapter 25
History and Organization
Chapter 25 of the Starting and Running a Profitable Investment Club briefly discusses the history and organization of the NAIC.
The National Association of Investors Corporation (NAIC) is composed of a small group of paid employee and a large group of volunteers. The club could not function properly and in so many locations without the abilities and dedication of the volunteers.
NAIC was formed in 1951 representing four investment clubs in Michigan. Of the original four, only the Mutual Investment Club of Detroit remains active today. Currently, more than 400 NAIC investment clubs are at least 25 years old.
NAIC is an independent Michigan not-for-profit organization governed by a board of trustees. The trustees set up a not-for-profit corporation (the N.I.A. Corporation) that is governed by directors elected by the NAIC membership.
NAIC has three different types of membership: individuals, investment clubs, and corporations. Members pay dues and are considered members of NAIC and the World Federation of Investment Clubs of which NAIC is a member.
The same Trust that setup the board of trustees established a separate corporation to operate NAIC Advisory Service. ‘A nominee partnership was established to expedite the transfer of securities in NAIC’s Low-Cost Investment Plan’. The Trust established the NAIC Growth Fund, Inc in 1990. The NAIC Growth Fund is a closed-end investment fund using the NAIC investment principles.
Two advisory groups assist different divisions of NAIC. The Board of Advisors counsels the Trust and NAIC on policy and investment education matters. The Corporate Advisory Committee with NAIC and the N.I.A. Corporation in developing new programs and projects and also conducts the Investors Expo.
A chart found on page 238 of the Starting and Running a Profitable Investment Club depicts the flow of control, membership, and services in the NAIC organization.
Tim Barroso