A survey by Norwich and Peterborough Building Society has found that 98% of its investors would prefer the Society to remain mutual. Mutual means that the Society is owned by its members i.e. investors meaning that all profits are distributed to them in the form of bonuses or competitive interest rates.
This 98% is up 2% on last year.
Our View
Mutuality is a good thing for investors, however, in these challenging and competitive times, it may restrict the development of any organisation to expand or diversify due to lack of capital which is commonly available in the form of shareholder funds for Plc's.
As with all mutual's, our view is wait and see. It may be one year, it may be ten years but most larger, branded, mutuals will de-mutualise and become Plcs eventually. The cut throat area of personal investment and finance almost dictates the fact.