Perk up Christmas with share rewards

BUYING presents over the Christmas period can seem like an uphill struggle. The spending quickly snowballs, and dredging up gift inspiration for those rarely-seen relatives may feel impossible.

But for wily savers, the companies in their portfolios could provide a helping hand.

First and foremost, investing in shares is designed to grow savers’ money over the long-term.

And buying shares for other people is frustratingly complicated, due to a tangle of tax rules.

One exception is for family members to put shares in a child’s jun- ior ISA, which could prove a valuable nest-egg for later life.

But for everyone else, several companies offer perks which could help out with Christmas.

British designer Mulberry, for example, most famous for its £500plus handbags, offers shareholders a generous 20pc off at 17 of its shops around the world. The minimum number of shares to qualify is 500, which adds up to a hefty outlay of more than £1,558.

Anyone keen to bag their loved one a Mulberry wallet could get the discount before Christmas. Just buy the shares – and, if you invest through an online service like Hargreaves Lansdown, make sure the firm sends proof of ownership to Mulberry – and the discount will be ready within seven days.

It’s a similar story for English wine maker Chapel Down. It has two levels of rewards. Shareholders with 500 to 1,999 shares, an investment of between £410 and £1,639, get a free tour of Chapel Down’s vineyard for two people every year. The holding will also give you a 25pc discount voucher which can be used once a year.

If you have more than 2,000 shares, which will cost £1780, you get the tour plus a 33pc discount on all its wines. On top of that, you get 25pc off the Curious beer and cider range, 10pc off Chapel Down spirits, 25pc off food at the Swan at Chapel Down restaurant in Tenterden, Kent, and other promotions. Presents for the bon viveurs just got a lot cheaper.

It’s important to note, however, that shares should never be bought just for the perks, especially when they involve a considerable investment. Ian Forrest, an analyst at The Share Centre, says: ‘Looking around the market to see what’s available could help investors get into the habit of saving and investing as well as providing some help with the costs of life.’

Russ Mould, investment director at AJ Bell, believes clothing store Next has the potential to perform well. Again, savers must plough in a considerable £4,338 to buy the 100 shares needed to qualify, but every year they get 25pc off one big shopping trip. But it is too late to bag a Next discount voucher this year, as they are usually sent out in April.

Mould points out: ‘Holders of the shares will have exposure to a well-run, soundly financed retailer which generates more profit online than it does through its stores. Online earnings also translate into the sort of healthy cash flow that pays solid dividends.’

FOR anyone looking for a cheaper option, it only takes ownership of one 209p share in Harry Potter-publisher Bloomsbury to get 35pc off its books.

High Street favourite Marks & Spencer asks that savers buy only one 263.4p share, and it will send them vouchers which include 10pc off in-store and online, and £2.50 to spend in the cafe.

Anyone wanting to take their family out for a cosy pub lunch, who happens to own a 254p share in Mitchells and Butlers, will get 12 vouchers for 20pc off (this year, they must have bought the share before December 3).

A full list of companies offering discounts can be found on Hargreaves Lansdown and The Share Centre’s websites. Forrest says: ‘It would be good to see more companies giving perks.

‘The companies involved do it as they attempt to encourage greater loyalty from customers and more business. It also gives a greater sense of overlap between the interests of shareholders and customers. That should ultimately help improve corporate governance and management.’

Not to mention adding a bit of festive fun to a share portfolio.