Low-risk, long-term growth: Why more people are turning to mutual societies
Whether you have just £5 a month to put aside, or you’re looking for a better rate of return on your savings pot mutual societies can offer a host of benefits as well as helping your savings grow, and this long-standing mutual puts its customers at the top of that list.
We spoke to Jamie Bellamy, the Society’s chief executive officer of Sheffield Mutual and a member of the board to find out more about the society, its ethos and why now is a great time to put your money with a mutual.
Customer service
“Our vision is to be the standard bearer for service levels,” says Jamie. “We take a personal approach to dealing with our customers. Customers can pick up the phone and will speak to one of the 27 team members.
“Of course, if you prefer to do things digitally there is an online portal so that you can check and manage your investments and communications at the click of a button, via email or online chat.
“The team members here get to know their customers, with no time limits on calls, you’ll speak to a real person in the UK-based office, who can sort it out.”
You are the shareholder
Mutuals are member-focussed and member-owned. It means profits made by investing your money don’t go into a shareholder’s pocket, they come back through to members as bonuses, lowering costs, minimising risk and improving services.
Rewarding loyalty
Mutual societies were built on the principles of mutuality, cooperation, and community benefit. You can think of it like a credit union but bigger. For fans of ‘It’s a Wonderful Life’ you’ll know the power of George Bailey’s “wonderful old buildings and loan”
“Everything we earn is either put back to members through to members as bonuses, lowering costs, minimising risk and improving services,” said Jamie.
Long-standing
Mutual societies have been around for hundreds of years, and Sheffield Mutual was founded in 1892. Its customers too are usually here for the longer haul. With minimum investments of three years, those of 10, 20 and over 25 years will give even better results – this makes them great for future planning, investing for children or grandchildren and building up savings for retirement.
Lower risk
When you invest with Sheffield Mutual they pool your money together with other members in the with-profits fund. This is then invested in assets like commercial property, shares, fixed interest, cash, bonds and government gilts. The with-profits fund is managed to provide a low to medium risk investment, appealing to individuals with a more cautious approach to investing.
With-profits aims to offer a better return than a typical bank or building society account but is not as risky as investing all your money directly in the stock market.
Smoothing the bumps
The with profits fund mitigates market ups and downs by ‘smoothing’ the bumps – that means keeping some profit back in the good times to give back to members in bonuses when things are not doing so well.
Sustainable investing
Sustainable investing is investments that aim to have a positive outcome on Environmental, Social and Governance (ESG) initiatives whilst aiming to generate long-term financial returns. Sheffield Mutual has a Sustainable Fund and you can read more about ethical investments on its website.
Giving back
The Society has a community pot to support local causes who can pitch for money for a project, and each year the staff choose a charity to support.
Building for your future
Whether you want to save regularly – from just £5 or £10 a month or you have a lump sum to set aside and make money on for the future, start children’s savings or life insurance Sheffield Mutual can talk you through their options and explain the benefits.
Straight talking
Sheffield Mutual is not a financial advice service, but, because they are so customer focussed they will spend time getting to know you and your circumstances. Then they can explain, in non-jargon language, what they think the best options could be for you –whether it’s an ISA, a savings plan or a with profits fund
Compliance and regulation
The Society is governed by a board of directors and dual regulated by the PRA and the FCA.
The feeling’s mutual!
Find out more and get in touch – the friendly team would love to hear from you. Visit the website here