This report issued by CML critically examines the external management structure prevalent in Singapore’s REIT and Business Trust sector, specifically focusing on Keppel Infrastructure Trust (KIT) and its manager, Keppel Infrastructure Fund Management (KIFM). The analysis highlights the inherent conflicts of interest arising from this model, where the manager’s fees may not align with unitholder returns, exemplified by KIT’s revised fee structure that led to significantly higher fees for KIFM despite declining organic business performance. The report questions the accretiveness of acquisitions, the use of debt to fund distributions, and the lack of a high watermark in the performance fee, suggesting potential disadvantages for unitholders. Furthermore, it raises concerns about board independence and the broader implications of Keppel’s asset management ambitions on its listed trusts.