Two private equity trusts have been cut from Winterflood’s 2026 recommendations list, with further changes in its debt and flexible investment picks, the firm revealed today.
Having looked at how the research house’s 2025 selections performed and the equity trust recommendations for the year ahead, below, Trustnet highlights Winterflood’s alternative and fixed income picks.
RIT Capital
Starting with the IT Flexible Investment sector, Caledonia Investments has made way for RIT Capital Partners. The analyst team, headed by Emma Bird, said: “We continue to view the former’s outlook as favourable but see greater upside at RIT Capital, which is trading at a larger discount to its long-term average rating and stands to gain from a venture rebound. In addition, the recently refreshed management team is streamlining both the investment approach and the portfolio.”
They described it as an “interesting proposition”. Shares have traded at a premium for much of the century but were hit hard in 2022 as its private holdings detracted from returns and are now on a hefty 22.9% discount to its net asset value.
“Our long-held view is that the de-rating went well beyond reason,” Winterflood analysts said. “There have certainly been lessons learned and the team has seen substantial turnover, while the large ownership by the Rothschild family continues to provide good shareholder alignment.”
The trust aims to achieve long-term capital growth through a mix of global equities, private companies and uncorrelated strategies while limiting downside risk.
Fixed income
The other non-equity addition to the firm’s recommendations came in the debt sphere, where TwentyFour Income was picked.
It is “well positioned to capture the benefits of the supply/demand dynamics and regulatory reform within the structured credit sector,” the analysts said, noting that manager Aza Teeuwen and his team are “competent, experienced investors”.
The trust specialises in European and UK asset-backed securities (ABS), a market that is “poised for growth”, the analysts said, as banks return to traditional funding and increased corporate activity expands supply.
While its shares trade at a premium, the trust itself has frequently traded on a premium since inception, Winterflood analysts noted, adding that this is sustainable because the vehicle offers a “100% realisation opportunity” every three years, providing “solid downside rating protection”. The next instance of this is due in Autumn 2028.
TwentyFour Income Fund joined BioPharma Credit, CVC Income & Growth and Invesco Bond Income Plus as favourites for the year ahead.
Private equity
The only other sector with meaningful changes was the IT Private Equity peer group, where two trusts were removed for 2026.
While Winterflood’s analysts kept HgCapital Trust, HarbourVest Global Private Equity and Schiehallion Fund (which was put on the list in October 2025), two names did not make the cut.
Pantheon International was dropped as they “felt there was a stronger argument to be made for several other fund of funds investment trusts”.
“In the coming months, we will get more clarity on these vehicles’ ability to capture the substantial exit activity of 2025, and we will adjust our preference accordingly,” they said.
Meanwhile, Seraphim Space Investment Trust, which was initially added when the discount reached 70%, has been removed. Back then, investors were “clearly misjudging” the portfolio. However, at a 9% premium, the risk/reward is now “much more balanced”, they said.
Other alternative favourites
Last year was a tumultuous one for Winterflood’s favourite trusts investing in property, with Care REIT and Urban Logistics REIT both taken over in the first half of the year, while Suprmarket Income REIT left the trust universe after a listing transfer.
In July, the research team made a number of changes, adding Target Healthcare REIT and Tritax Big Box REIT.
“As such, we have made no further changes at the start of 2026, maintaining the number of recommendations within the property allocation at four”.
The other names on the list are Custodian Property Income REIT and TR Property.
Elsewhere, Winterflood analysts have kept five names in the infrastructure and renewable energy space. 3i Infrastructure and Cordiant Digital infrastructure get the nod among trusts that specialise in economic infrastructure.
On the social side, HICL Infrastructure is retained, having only recently joined the list in July to replace BBGI Global Infrastructure following the latter’s deal with British Columbia Investment Management.
On an environmental front, Foresight Environmental Infrastructure was retained for its diversified revenue sources, limited exposure to UK power markets, regulatory frameworks and weather systems, while Gresham House Energy Storage (GRID) covers the firm’s constructive view on battery storage.
“While GRID lacks the geographical diversification of its key listed peer Gore Street Energy Storage, it is executing well on its more focused strategy and over the past year has seen better NAV (and share price) total return performance,” Winterflood analysts said.