In my view if you don't understand the fund management structure...

In my view if you don't understand the fund management structure then you shouldn't be investing in these stocks.

To incredibly simplify, the management entity is usually used to strip equity or capital increases from each fund asset, to generate "income" from "capital" which can then be diverted off to investors or other projects. The report does highlight this in a complicated manner.

Basically, management entities usually make good income, while the assets themselves sit an effect capital neutral position (ie: capital increases are offset by fees). This means that the return on the fund is usually low but usually more secure, as fees are usually worked out from a forecasted increase in capital value. Stripping fees from assets that are not projected to increase in capital value is just a waste of time (and will drive a business bankrupt).

The equity value of the management entity is usually more volatile, but cash returns are usually better thanks to guaranteed fee structures.

Despite what the report may say, Macquarie and many other businesses have been using the model successfully for some time. In my view, unless there is a significant downturn in infrastructure or "real" assets this model should operate just fine.

Just my 2 cents :)